Legal Question in Real Estate Law in Tennessee

If you are in a land contract in Tennessee, can the people owning the property we are buying from, take out a loan on the property without our notice.


Asked on 9/04/17, 11:07 am

1 Answer from Attorneys

Dan Scott Scott Law Group, PC

The answer will really depend on the terms of your contract. If the land contract fails to include a requirement that no additional mortgages can be granted by the seller then they would be entitled to take out a mortgage. They are usually obligated to deliver a deed to you when you finish paying for it. You may want to go to the sellers and try to get the intention clarified. If they taken out a loan on the property for more than you are paying for the property that may be a sign of a problem. Hope this helps.

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Answered on 9/05/17, 2:34 am


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