Q: Can you sell land you recently started paying on?
My sister and her husband are buying property for a very good price if they somewhat rush the deal. This property has 45 acres. We plan on buying 5 of those acres and building a home. We also plan is to give them the down payment they need to make the purchase. Which pays for the land we're buying from them. What I'm concerned with is, how the 5 acres will eventually be given to us. They are starting off with some type of high interest loan place and plan to refinance soon after with the bank, once in their name. Then since the house is worth more (125000) than they are paying, they say they can drop the 5 acres off of what their using to refinance. Then basically gift it to us, seeing that we had already paid with the down-payment they needed. Basically, are they able to give us property they will be paying on?
A:
What you are asking is easily doable. I suggest that you join in the purchase, get the 5 acres surveyed off of the larger tract, and make sure the bank does not include it in its mortgage documents. Then the seller deeds you the 5 acres, and your sister the 40 acres, with the bank loan being secured by the 40 acres. This is the simplest method.
Alternatively, your sister can get the 45 acres deeded to her and then deed you the 5 acres; for that to happen, the following needs to occur.
1. the 5 acres you plan on buying are surveyed, and that survey is properly recorded, AND
2. The bank is willing to release its claim on the 5 acres after the purchase goes through.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
