[WSBARP] Loan by Realtor Secured by DOT

[Inge Fordham]

Colleagues,

This is cross-posted.  Apologies if you receive it twice.  I have been contacted by a couple of different realtors who lend money to clients to perform repairs or improvements to real property to increase marketability and then get repaid when the property sells.  They would like to have their clients sign a promissory note for the money loaned for repairs or improvements and secure their interests by recording a DOT against the property.  If the property does not sell, the client remains liable for paying the note.  They want to charge the cost of preparing the promissory note and DOT and recording the DOT to the client as an administration cost.  Are there any regulations or prohibitions I need to be aware of (aside from the terms of any mortgage loan)?

Thanks in advance,


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Mobile: (206) 778-3131
www.fordhamlegal.com<http://www.fordhamlegal.com>

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