Do you have a rental agreement template already?

His agreement is with you not them.If the note gets called and you can't personally pay it off, it will likely go to foreclosure and the buyer can sue you for breach of contract.Are lenders calling the note due?

@Tom ThomsonI am not an attorney but my 2 cents is he does not have to return your earnest money in my opinion if he can still meet the closing date on the propertyI view it as you are terminating the agreement because you don’t like the house anymore

As a landlord, you have signed a legally binding lease agreement, which makes terminating it challenging without proper cause.

They must understand the "subject to" arrangement, including the risks associated with the due-on-sale clause and the fact that the mortgage remains in the original borrower's name.It’s advisable to have all agreements and disclosures in writing to avoid future disputes.Buyer’s Financial Stability:Ensure the new buyer is financially stable and capable of making the mortgage payments.

I'm second guessing that decision now and would feel a lot better if I paid someone to review things to make sure it is being done correctly since my friend does not do this as his day to day.An agreement was signed prior to my sale, and assignment of the sale contract and escrow sent the proceeds to my friend.

@Darrell KirbyRead the agreement - what is title company, their agent etc saying also some states have a 3 day cooling off period on certain purchases which could be canceled during that time.

You can collect rents electronically, and stop in at the property once a year or however often you feel comfortable as long as its agreed upon in the lease agreement. 

@Lilly FangThe way I have done this in the past was I had a lien on the property and let the property be in the name of the partner but we had a jv agreement outlining the terms of the profit split on the deal

However, the statute provides for exceptions that are important for CA landlord’s to understand.First, the statute expressly states that the one month limitation does not apply to rental agreements entered into before July 1, 2024, so if you have an existing security deposit of two or three times the monthly rent, you do not have to reduce that security deposits to comply with the new law.