can seller actually do this? - Posted by diana

import · September 20, 2002, 9:09am

Posted by diana on September 20, 2002 at 13:40:44:

I looked over the contract- there is nothing that notes a prepayment penalty for early or extra payments. There is a paragraph in it though thats states how she wants to be paid off. (50% of balance between such and such a date and then the remaining 50 % after the first of the following year.
Even though her terms are stated what happens if I were to pay her off tomorrow.
Diana

import · September 20, 2002, 9:09am

Posted by diana on September 20, 2002 at 09:09:04:

I purchased a home on a land contract.
I now have a chance to sell the home but in the contract it states seller doesn’t want their money for three years. On top of that she only wants half in that third year and the other half after Jan. 1 of the next year (her accountant advised her)
Someone told me yesterday that I can pay her off when ever I want to. Is this true?

Thanks,
Diana

import · September 24, 2002, 9:07am

Why would you want to pay her off? - Posted by GK(ON)

Posted by GK(ON) on September 24, 2002 at 09:07:03:

Why don’t you keep the money and reinvest it?

Sell the place with another land contract, collect your payment, make the payment to your seller and keep the change.

If your buyer insists on paying you all cash and getting the deed, here is what you do.

Call up the seller and tell her you may be coming into some money (don’t tell her how) and you are thinking of paying her off. Ask how much of a discount she will give you. Try for 25% but take what you can get.

I can’t imagine anyone REFUSING to take cash.

import · September 22, 2002, 10:00pm

Re: can seller actually do this? - Posted by James Buster

Posted by James Buster on September 22, 2002 at 22:00:32:

Is interest accruing while you wait to pay her off?
If not, why pay her off early?

import · September 20, 2002, 5:11pm

Re: Without reading your contract - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 20, 2002 at 17:11:30:

it is hard to say, but. It sounds to me like the payment instructions probably do prevent early payoff.

A real good time to read binding contracts is before they become binding, that would be before we sign them not after.

import · September 20, 2002, 10:43am

Re: can seller actually do this? - Posted by Jerry

Posted by Jerry on September 20, 2002 at 10:43:40:

If your contract allows you to make your payments or more, you may be able to pay her in full.

Jerry

import · September 20, 2002, 11:15am

Re: can seller actually do this? - Posted by chris

Posted by chris on September 20, 2002 at 11:15:10:

jerry’s right.
check your contract. if there is no prepayment penalty or no restrictions against making early or extra payments then you’re fine. by law, it’s incumbent on the SELLER to require this if that’s what she wanted.

if the contract specifically outlines the payment plan you describe and you did indeed sign the contract, then that’s what you’re obligaged to do. if that’s the case, you may want to try to negotiate with her and amend the contract if she’ll agree to it. if she wont agree, you could always threaten to pull out and lose your earnest money, but such strong-arming is obviously pretty unpleasant.

good luck.