Jump to content

Recommended Posts

delancey

No disclaimer needed about contacting a lawyer, just hypotheticals. ?

Give me a head start on this in case I need sell a property, please:

Scenario:

You retain title then sell a residence not for cash but for 36 monthly payments at “X” percent interest. We know “everybody” likes payments here. Forget straight cash. Move in dependent on payment in full.

How are the contracts typically structured as it relates to default? 

Generally what are the typical legal norms for keeping partial payments and interest if a default on the remainder of the 36 months occurs?

(Eviction not an issue.)

Thanks.

Link to post
Share on other sites
  • Replies 35
  • Created
  • Last Reply

Top Posters In This Topic

  • delancey

    6

  • Davaoeno

    5

  • Jawny

    4

  • Flakes

    4

Top Posters In This Topic

Popular Posts

Twice you sent me PMs asking for help and both times I gave you advice- and both times you then just deleted the conversation and left without so much as a goodbye.  Now you ask for advice again

Not sure what you mean by vendor.  The situation I described is pretty common here.  There is a title for a large area of land.  Many homes have been built on subdivided portions, but none of these fa

To repeat- no buyer ever will buy a house without the Title and without taking possession.  People can make up all the fantasy stories that they want but it is NEVER going to happen.  The buyer will a

Davaoeno
4 hours ago, delancey said:

No disclaimer needed about contacting a lawyer, just hypotheticals. ?

Give me a head start on this in case I need sell a property, please:

Scenario:

You retain title then sell a residence not for cash but for 36 monthly payments at “X” percent interest. We know “everybody” likes payments here. Forget straight cash. Move in dependent on payment in full.

How are the contracts typically structured as it relates to default? 

Generally what are the typical legal norms for keeping partial payments and interest if a default on the remainder of the 36 months occurs?

(Eviction not an issue.)

Thanks.

With move in being dependent on payment in full I honestly don't think you have to worry about what you will do if you find a buyer .

Link to post
Share on other sites
Jawny

The only times I've known of home purchases here (limited experience in this) the contract/agreement was for immediate possession of the property with a promise of payments as specified.  For example, my BIL bought a house and lot with a large initial payment and two subsequent payments,p.   No interest was involved, but an agreed upon price.for the house and lot.

If the BIL, should fail to make a subsequent payment, the owner has the right to recover the property and retain the payments thus far.  I am aware of this as I am the BIL backup plan if he falls short.

Ive bought a house and lot with an initial large payment, and the remainder due upon receipt of title.  That was 14 years ago and the title is still not provided and the payment is not made.

  • Thanks 1
Link to post
Share on other sites
Davaoeno
Just now, Jawny said:

immediate possession of the property

it doesn't work any other way ! 

Link to post
Share on other sites
mikewright
1 hour ago, Jawny said:

Ive bought a house and lot with an initial large payment, and the remainder due upon receipt of title.  That was 14 years ago and the title is still not provided and the payment is not made.

Does that mean that title is still in the vendor's name, and that you will never receive title to the property if the vendor doesn't make a further payment?

Link to post
Share on other sites
Jawny

Not sure what you mean by vendor.  The situation I described is pretty common here.  There is a title for a large area of land.  Many homes have been built on subdivided portions, but none of these families ever made the effort to get a title.  

I come along decades later and buy the property from the children of the long deceased parents.  The agreement was, I give you some money, you divide it up among yourselves (there were six siblings, all with no interest in the property except what their share would be if it was sold). But, to assure I get a title some day, the agreement was written so that anothe large payment would be made once a title was provided.  In effect, I was enticing them to do the work to get that title.

As far as having no title, I have no concerns about that.  The house and lot will not likely be lost to us.  We even have a bakery and store on the property now.

  • Like 2
Link to post
Share on other sites
Davaoeno
1 hour ago, mikewright said:

Does that mean that title is still in the vendor's name, and that you will never receive title to the property if the vendor doesn't make a further payment?

Mike- I think you meant to say " you will never receive title to the property if you don't make a further payment " ??

  • Thanks 1
Link to post
Share on other sites
10 hours ago, delancey said:

No disclaimer needed about contacting a lawyer, just hypotheticals. ?

Give me a head start on this in case I need sell a property, please:

Scenario:

You retain title then sell a residence not for cash but for 36 monthly payments at “X” percent interest. We know “everybody” likes payments here. Forget straight cash. Move in dependent on payment in full.

How are the contracts typically structured as it relates to default? 

Generally what are the typical legal norms for keeping partial payments and interest if a default on the remainder of the 36 months occurs?

(Eviction not an issue.)

Thanks.

Normally soon as they sign the agreement and make a start payment then they may move in the property.

u keep all titles docus of course  till u receive their final payment at the end.

if they miss 2 payments then u need go court to have them kicked out.

u mention this clearly in the agreement but i think u will come up with another approach.

Link to post
Share on other sites
delancey

So you can structure a loan to retain payments for failure to complete the entire agreement and not have to return any funds already paid toward the agreement, and not allow them to ever move in (in my scenario where they must pay in full to be allowed to move in)?

Thanks guys, no problem admiting I have no idea how it works here.

Link to post
Share on other sites
colemanlee

Davaoeno probably knows more than anybody else on the forum about this stuff...PM him

Link to post
Share on other sites
delancey

Looking for a range of perspectives plus starting a new thread while the forums are kind of slow isn’t a bad thng. An experienced real estate lawyer will ultimately handle it but a range of personal experiences are important, too. Thank you.

Link to post
Share on other sites
12 hours ago, delancey said:

No disclaimer needed about contacting a lawyer, just hypotheticals. ?

Give me a head start on this in case I need sell a property, please:

Scenario:

You retain title then sell a residence not for cash but for 36 monthly payments at “X” percent interest. We know “everybody” likes payments here. Forget straight cash. Move in dependent on payment in full.

How are the contracts typically structured as it relates to default? 

Generally what are the typical legal norms for keeping partial payments and interest if a default on the remainder of the 36 months occurs?

(Eviction not an issue.)

Thanks.

Not sure about the Philippines but in the USA you keep what ever payments and down payment that you received.

 

I currently have two properties under contract. If he doesn't pay I keep the $20,000 dwn money, all interest and all principal paid to me. 

Link to post
Share on other sites
sugbu777
6 hours ago, Jawny said:

Not sure what you mean by vendor.  The situation I described is pretty common here.  There is a title for a large area of land.  Many homes have been built on subdivided portions, but none of these families ever made the effort to get a title.  

I come along decades later and buy the property from the children of the long deceased parents.  The agreement was, I give you some money, you divide it up among yourselves (there were six siblings, all with no interest in the property except what their share would be if it was sold). But, to assure I get a title some day, the agreement was written so that anothe large payment would be made once a title was provided.  In effect, I was enticing them to do the work to get that title.

As far as having no title, I have no concerns about that.  The house and lot will not likely be lost to us.  We even have a bakery and store on the property now.

The scenario you presented above does happen...quite often.

Link to post
Share on other sites

I (we) just purchased some land on a "payment type of plan",

in the contract it mentions about $X by 96 payments (months),  it also say that if we miss 3 payment in concession, then the land will go back to the developer, and we get none of the money back,

I didn't see anything wrong with that since its in the Philippines, and the payments are so cheap..

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..

Capture.JPG

I Understand...