Q: Nephews want to buy my 1/3 undivided interest in land we inherited together using promissory note. Is is this advisable?
My mother died in '06 w/o will. Judgement was filed and recorded in Muskogee county, Ok in 2012 showing myself and only son of my deceased sister each being owner of 1/3 undivided interest. My deceased brother's 4 children were shown to have 1/12th undivided interest. Two of the owners of 1/12 interest want to use a promissory note to buy out interest from myself and the other nephew who owns 1/3rd interest. They want us to transfer title of our portions to them by quitclaim or something like it. I'm concerned about signing over my interest with only a promissory note that may take 2 or 3 years to be paid off. What kind of transfer document would be best?
A: First and foremost, ask yourself if this were a stranger would you do it. If not, then do not do it just because they are family by some degree. Contracts are there to help keep friends friends, family family, etc.... Without one, you are often inviting trouble upon yourself. If they have good credit then your better option would be for them to get a loan from a bank and then you are free and clear, if they default, then they are mad at the bank and not at you. With that being said, you should consult with an attorney to review the actually ownership interest, the proposed promissory note, and any other documents being proposed.
James Tack Jr agrees with this answer
A: You can secure the note payments by taking a mortgage on the property after you transfer the property. However, you have to ask yourself will you want to foreclose if payments are not made and what kind of family troubles you will have if you are forced to foreclose the mortgage. You will have fewer problems if the buyer can pay cash or get financed. You should consult with an attorney to determine your best course of action.
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