A Friend Is Purchasing Property Per A Land Contract In Nys-not Yet Full Paid. Can He Sell Property?
hе ѕауѕ hе hаѕ thе rіɡht tο sell thе property, even though аƖƖ thе payments hаνе nοt уеt bееn mаԁе. I ѕау hе doesn't hаνе thаt rіɡht, ѕіnсе, аѕ thе contract іѕ nοt fully paid, thе Deed іѕ nοt іn hіѕ name.
He can sell his interest in the property if the language of the land contract doesn’t prohibit it, but it would not be fee-simple transaction/sale. Title can’t pass with a land contract, but only by a deed.
Just like a car that is purchased on an installment contract. Just because you still own money on the vehicle doesn’t mean you can’t sell it. Most contracts require the beneficiary to give permission before allowing a third party to take over payments…..but again the language prohibiting such an assumption must be in the original contract. For sure the property can be sold if your friend sells his interest and the new buyer pays off and the benificiary. This is not uncommon and is done through a normal escrow transaction.
He does not. He has not purchased it yet, he need to exercise the purchase option and obtain the deed first.
Right now he is a glorified renter, he can not sell property he does not own.