pre penalty clause?

[paulh1]

To whom it may concern
I sold a house via Owner financing and I assumed I had a pre penalty clause so the Buyer(Maker) has to pay me full amount with interests if he sells the home earlier as stated. I looked at my title and read the last paragraph and if I understand correctly I assume he doesn't pay the penalty and full amount with interest . Though my legal vocabulary is limited , could someone confirm this to me that the seller does not have to pay me full amount with interests?

" MAKER reserves the option of prepaying the principle of this note, in whole or in part, at any time after the date hereof without penalty. Accrued and unpaid interest with respect to such principle amount prepaid is due and payable on the date of such prepayment. All amounts of principle so prepaid and received by the owner and holder of this note shall be applied to the last maturing installments of this note in their inverse order and maturity."

Thank you

 

[Zigner]

US Law Only

 

[OK-LL]

To whom it may concern
I sold a house via Owner financing and I assumed I had a pre penalty clause so the Buyer(Maker) has to pay me full amount with interests if he sells the home earlier as stated. I looked at my title and read the last paragraph and if I understand correctly I assume he doesn't pay the penalty and full amount with interest . Though my legal vocabulary is limited , could someone confirm this to me that the seller does not have to pay me full amount with interests?

" MAKER reserves the option of prepaying the principle of this note, in whole or in part, at any time after the date hereof without penalty. Accrued and unpaid interest with respect to such principle amount prepaid is due and payable on the date of such prepayment. All amounts of principle so prepaid and received by the owner and holder of this note shall be applied to the last maturing installments of this note in their inverse order and maturity."

Thank you

From the language you provided, your assumption of a prepayment penalty is incorrect, hence the words "without penalty". Seller is required to pay only accrued and unpaid interest through the date of prepayment; because the future interest is not yet accrued the seller is not required to pay it when he pre-pays the principal balance of the account.