Does this seller have authority to sell this house?

[Brad E.]

Hey BP -

I found a motivated seller. He has been owner financed by another LLC (not a financial institution). The title to the property is still in the financing LLC's name. The way the seller described his current agreement with the 3rd party LLC is that when he pays off the loan he will receive title.

Here is where I am getting lost - do I need to get the LLC to sign the purchase agreement since they currently hold title? How I can even verify that the seller has this agreement in place and has the authority to sell the property?

Any advice on how to proceed here in order to get the agreement signed by the proper parties and property under a valid contract?

Thanks in advance.

[Account Closed]

Originally posted by @Brad E.:

Hey BP -

I found a motivated seller. He has been owner financed by another LLC (not a financial institution). The title to the property is still in the financing LLC's name. The way the seller described his current agreement with the 3rd party LLC is that when he pays off the loan he will receive title.

Here is where I am getting lost - do I need to get the LLC to sign the purchase agreement since they currently hold title? How I can even verify that the seller has this agreement in place and has the authority to sell the property?

Any advice on how to proceed here in order to get the agreement signed by the proper parties and property under a valid contract?

Thanks in advance.

He may have a Land Contract or a Lease Option. You'd sign the agreement with him, because he will show you the paperwork for the Land Contract or the Lease Option and you will take a copy of the that contract along with your purchase agreement to open escrow and get a title report. The escrow officer will contact everyone involved. If it looks good to the escrow officer (it might take a couple of days for them to research and to know). If it's good, then you proceed with the purchase.

If he can't produce a copy of the agreement or if the Option period has passed, you have nowhere to go and it isn't valid.

Don't try this on your own. Get an escrow agent involved. (or an attorney who closes real estate)