Posted by BillW. on July 18, 2001 at 22:13:05:
Richard,
I believe you can use any standard contract. In the financing section, just make SURE you put a clause that you’re taking the deal subject to the existing financing.
You want to make sure you’re NOT talking “assume and agree to pay”. There’s a big difference. In subject to, you’re agreeing to pay, but NOT assuming the loan.
As a seller, you want the buyer to “assume and agree to pay” with a release of liability (“novation”)for you so that you’re off the hook for responsibility for the loan. Otherwise, the lender may be able to come back to you in the event your buyer defaults.
BillW.