seller financing - after death of seller

[leigh229]

IN NORTH CAROLINA...

We are considering purchasing a residential property, and the seller has offered financing. She has been trying to sell the home conventionally for quite some time. Assuming we can arrange terms regarding interest and term, etc., what happens at her death? The term would be at least 30 years, and the seller is 80 years old. She has no heirs (ie. children)

[pojo2]

Children are not the only kin who can be heirs and someone will come out of the woodwork to make a claim if there are ANY living relatives.

You protect yourself by having an Atty review or even create the paperwork including a clause for such an eventuality. That person will also make sure that ALL the paperwork is in order and filings done appropriately. That is the way to protect yourself.

[JETX]

Originally Posted by leigh229

what happens at her death?

Absent any specific agreement to the contrary in your note, nothing. You continue to owe, and make payments, to her estate. As to what her estate does with the funds.... is entirely up to her (or state law if she dies intestate, without a will).

[nextwife]

As was stated, if you do this properly, having a RE attorney review the documents, make certain they are RECORDED and that the seller has good title (get title insurance), what happens "after" is irrelevant to YOUR contract. You may eventually be making your payments to whomever recieves the property from the seller's estate (or a trust if the transfer the mortgage or LC to a trust), but they are bound by the agreement.