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

[Craig Gourley]

Other than  possible priority issue, I would deed the property and convert the remaining balance to a Note and DOT

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Timothy Lehr
Sent: Wednesday, January 21, 2026 8:23 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Seller financed and transferring title prior to payoff...pitfalls?

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

[cid:image001.jpg at 01DC8C8C.75B57A90]

p: 360.855.0131
e: timothy at stileslaw.com<mailto:timothy at stileslaw.com>
w: www.stileslaw.com<http://www.stileslaw.com/>

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