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I am going to sell a building and do Seller Finance. Can I write up a contract for the buyer that states that I keep the property/title in my name until the building is paid off. Is this legal?

TIA
I’m just concerned about what’s the best way to go about getting the building back if the buyer doesn’t pay.

Thanks!

2 Thoughts on Texas Seller Financed Property Loan Contract Question?
  1. Reply
    linkus86
    February 8, 2014 at 12:53 pm

    It is legal, but is considered a rent to own contract. Remember, if you do this you retain responsibility for the taxes being paid. Actual seller financing would mean that title would pass but a mortgage, written by you, would be recorded as a priority lien. I feel sorry for the sucker that agrees to it.

  2. Reply
    Paul in San Francisco
    February 8, 2014 at 12:59 pm

    Yes, it is legal but the proper way to achieve what you want is to: (1) have the buyer sign a promissory note for however much the buyer is borrowing from you, and (2) have the buyer sign a deed of trust with naming you as the beneficiary and record it with your County Recorder’s office.

    Google the net for forms of promissory notes and deeds of trusts.

    Trust me, don’t do it the way you are thinking of doing it — it is way too risky for you and for the buyer. Just don’t.

    Hope this helps.
    Good luck!

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