Posted by Peter on January 01, 2007 at 19:48:26:
It happens all the time in tihis area. In this area it is a common occurrence of shady, crooked or illegal transactions that take place. Just the other day a judge ordered an investor to paid a $500k fine for an shady illegal real estate transaction.
I wanted to find out what laws govern or what recourse one would take when a buyer sold a property he doesn’t own?
Legal Double Close? - Posted by Peter
Posted by Peter on January 01, 2007 at 16:12:56:
Is it legal for a Buyer to purchase property from Seller on Land Contract at one price and then turns around and market and sell to another retail Buyer for a much higher price.
The Buyer uses the retail Buyer’s retail loan money to purchase from original legal owner Seller.
The LC states Buyer can not sell, assign nor convey property w/o witten consent of Seller. The Buyer signs contract thst he will reside in property. Also the contract was not fully executed between Buyer and Seller.
Re: Legal Double Close? - Posted by John Merchant
Posted by John Merchant on January 05, 2007 at 10:21:35:
This is exactly why any B should demand title policy so he KNOWS if S has the legal right to sell…or not.
If first B said he would live there and can’t resell w/o consent of first S, then no, obviously he cannot sell now without first S’s consent.
Also of course, if a “contract” isn’t fully executed or complete, it’s NOT a completed K (contract) and isn’t enforceable by either party.
Re: Legal Double Close? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on January 01, 2007 at 18:03:52:
I am stating my opinion, not a legal opinion. Most buyers would not purchase property if they don’t understand the wording in the document. I would guess the seller is saying that he wants his money out of the deal before it is sold. You hope that that is it. Why would buyer sign a contract that he will reside in property if he intends to flip it? You also said contract was not fully executed. Obviously the buyer can’t resell property he doesn’t own.
Bill
Re: Legal Double Close? - Posted by Peter
Posted by Peter on January 07, 2007 at 14:18:31:
Thanks John for your response. That’s what I thought. I’ve also heard that a lender should not go forth with a loan for the retail “end” buyer if the “middleman” Buyer is not the legal owner (on title). Please confirm. Thanks for your help.