What does this clause mean?
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What does this clause mean?
Purchaser may not be entitled to sell, assign, convey or encumber all
or any portion of the Purchaser’s interest in this Contract or
Property.
We are trying to buy a new home and we have this clause in an owner
finance contract we have. Will this prevent us from selling the owner
financed home?
Asked on March 5, 2017 under Real Estate Law, New Mexico
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
It means exactly what it sounds like: until and unless you pay off the owner financing, you cannot sell the home. However, you should be able to sell if you use the proceeds of the sale to (the day of closing) pay off the owner financing; in doing so, you will effectively terminate the agreement by eliminating any interest the seller still has in the home--if you do not do so, however, you will not be able to legally sell the house.
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