[WSBARP] Seller financed and transferring title prior to payoff...pitfalls?

[Timothy Lehr]

All,

I have a PC seller that sold a property on a seller financed RE contract a number of years back. There's an executed promissory note and deed of trust. The RE contract contemplated a fulfillment deed to be recorded when the balance is paid by buyer. There is still a balance owed, but seller wants to assist buyer by transferring title now so buyer can apply for flood insurance. Insurance company is saying she can only apply if she is the title holder.

Any pitfalls, considerations, or problems if seller transfers title now and keeps receiving payments via the promissory note?

Thanks,

Timothy C. Lehr
Attorney & Partner

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p: 360.855.0131
e: timothy at stileslaw.com<mailto:timothy at stileslaw.com>
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