[WSBAPT] Real Estate Contract conundrum

[Robert R. Cole]

It is called a "wrap around" contract.  New REC with the New Buyer 
paying both the Original Seller and the Old Buyer their equity.  It is 
actually on the standard REC form as an "Assumed Obligation", and there 
will also be Payment of Amount Financed by Seller.  It is actually 
rather straightforward. Us old codgers did it all the time in the 80s.

Very Truly Yours,

Robert R. Cole

Law Office of Cole & Gilday, P.C.

10101 - 270th St. NW

P.O. Box 249

Stanwood, WA 98292

(360) 629-2900 (Telephone)

(360) 629-0220 (Fax)

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On 6/12/2015 4:26 PM, Amy Pivetta Hoffman wrote:
>
> All,
>
> Seller and Buyers enter real estate contract ten years ago for 20 year 
> term.  Now, a new buyer has arisen and old buyers and seller want to 
> sell.  Seller and old buyers are close family.  New buyer unrelated.
>
> The problem is that old buyers want to recoup what they’ve paid-new 
> buyer has agreed to price that would cover remainder on contract plus 
> what old buyers have paid.
>
> I have gone around and around about how to handle this properly.  All 
> parties tentatively agree on terms, I just can’t figure out how to 
> structure this properly.
>
> My thoughts are:
>
> 1.Seller gives Old Buyers Partial Fulfillment Deed.  No excise 
> consequence.  Now Seller and Old Buyers are all Sellers with title, 
> but Contract remains partially unpaid as to old buyers.
>
> 2.If I draft a Deed and Purchaser’s Assumption of Real Estate 
> Contract, we don’t get to modify for new price, etc. and Old Buyers 
> are cut out without a separate agreement (Unsecured Promissory Note)
>
> 3.If I draft a Fulfillment Deed, original Seller is cut out because he 
> no longer owns and no way to get the rest of his money.
>
> 4.If I draft an entirely new Real Estate Contract with new terms for 
> all Sellers and New Buyer, the old contract hangs out there and clouds 
> title.
>
> Can anyone suggest a document path that will allow both Seller and Old 
> Buyers to recoup their share of the new purchase price and not 
> compromise title?
>
> Help please!
>
> Amy Pivetta Hoffman
>
> Ph. 253.720.3020/F. 253.200.0855
>
> PO Box 73040, Puyallup, WA  98373
>
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