Expert: Dick Dennis - 6/20/2006

Question
owner wants 10,000 downpayment and 1000.00 per month till loan of asking price of 150,000 is paid. No bank just from her to him. In other words I don't think its really his property. She will lets him collect the rents, and he pays all the bills on said property (6 units). Is this safe? Who is the real owner? If she dies what happens? If he dies what happens? Can his wife sell the property and give that lady what she is owed? Whats really going on here? What problems can arise from such a transaction.  

Answer
That is not the proper way to conduct the sale of real estate. Way too many things can and quite often does go wrong. Do not hesitate. Go to a REAL ESTATE attorney to do the transaction properly.

There should be a purchase agreement and a big assortment of documents that go along with that. There should be a mortgage with the stipulated terms on it. A good real estate attorney will make sure it is done right. Title insurance will make sure that he does own the property and an escrow or closing service (depending on the state the property is located) will make sure the buyer gets what she is paying for. Take no chances.

I wish you well.

Dick Dennis            dixiedee13@aol.com