Legal Question in Real Estate Law in New York

Sale of business

I am selling a business which consists of mainly good will. The buyer is looking for me to hold a note for seven years. I would like to get a personal guarentee but would also like to attach a lien to the only physical asset he has which is a rental property that the net value would cover the note value. can this be done and if so how. Thanks


Asked on 2/18/08, 1:36 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Sale of business

If the Buyer is willing, a simple mortgage note and mortgage against the property would do it. Best is to have an attorney prepare the documents and record the mortgage. I also suggest that a simple title search be done of the real estate (may run about $150 or so) to verify what existing liens are against the property that might be ahead of your lien, so you know exactly where you stand. This is especially important if he were to deafult not only in your payments, but possibly defaults in any mortgage on the property that might be ahead of you.

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Answered on 2/18/08, 3:42 pm


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