Selling a house providing the financing yourself for the buyer Is it possible if I own outright my flat to sell it to the buyer where I provide the financing for the buyer to buy it off me? The flat is difficult to otherwise get a mortgage on. I presume this will require regulation by the Financial Conduct Authority (FCA) but is it even possible to do this once without a company that does this as a general product?
Jurisdiction: england-and-walesnorthern-ireland The relevant legislation here is the Financial Services and Markets Act 2000 together with subordinate legislation passed under that Act. Financial Services and Markets Act 2000: Section 19: (1) No person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is - (a) an authorised person; or (b) an exempt person. Section 22: (1) An activity is a regulated activity for the purposes of this Act if it is an activity of a specified kind which is carried on by way of business and - (a) relates to an investment of a specified kind; or (b) in the case of an activity of a kind which is also specified for the purposes of this paragraph, is carried on in relation to property of any kind. (5) “Specified” means specified in an order made by the Treasury. Financial Services and Markets Act 2000 (Regulated Activities) Order 2001: Article 4: The following provisions of this Part specify kinds of activity for the purposes of section 22(1) of the Act (and accordingly any activity of one of those kinds, which is carried on by way of business, and relates to an investment of a kind specified by any provision of Part III and applicable to that activity, is a regulated activity for the purposes of the Act. Article 61: (1) Entering into a regulated mortgage contract as lender is a specified kind of activity. (3) In this Chapter — (a) subject to paragraph (5), a contract is a “regulated mortgage contract” if, at the time it is entered into, the following conditions are met — (i) the contract is one under which a person (“the lender”) provides credit to an individual or to trustees (“the borrower”); (ii) the contract provides for the obligation of the borrower to repay to be secured by a mortgage on land; (iii) at least 40% of that land is used, or is intended to be used — (aa) in the case of credit provided to an individual, as or in connection with a dwelling; or (bb) in the case of credit provided to a trustee which is not an individual, as or in connection with a dwelling by an individual who is a beneficiary of the trust, or by a related person; but such a contract is not a regulated mortgage contract if it falls within article 61A(1) or (2). Article 73: The following kinds of investment are specified for the purposes of section 22 of the Act. Article 88: Rights under a regulated mortgage contract. So, if you are providing the mortgage to someone who will live at the property and are doing so by way of business (likely unless this is an arrangement with a friend or relative) then you will need to be FCA authorised unless there is an applicable exemption. See Chapter XV of Part II of the Regulated Activities Order and Section 38 FSMA and the Financial Services and Markets Act 2000 (Exemption) Order 2001 for examples of exemptions. A full analysis of financial services regulation would be too dense to fit into a Stack Exchange post and you should seek specialised legal advice before considering entering into any kind of mortgage as a lender. &quot;is it even possible to do this once without a company that does this as a general product?&quot; It doesn't matter whether you are a company or whether you do it once or regularly. However, due to the costs and practicalities of obtaining FCA authorisation (where applicable) and ensuring that contracts and land registry charges are correctly drawn up (given the high stakes), you are unlikely to see many one-off or &quot;amateur&quot; mortgages in the real world.
A lease of land is not the same as a residential lease, the latter being strongly regulated by special laws. So caveat emptor is the default rule for land leases (see this article). You have to look at the laws of your state, but let's take Washington as an example. This is not a residential tenancy which is subject to different laws, it's just leasing land, similar to leasing a chainsaw or a car. Your implied warranty would be that the land is fit for the ordinary purposes for which land is used, and that is all. It might be worth wondering about whether building a cabin on the land changes your property tax liability.
Colorado statute 42-6-206 imposes disclosure requirements on the sale of vehicles with salvage titles. That you didn't know it was a salvage does not seem to be of concern to this particular statute. This means that you are potentially entitled to redress against the people who sold you the car as well, provided the sale occurred in Colorado and they failed to disclose it to you (i.e., you didn't just forget about it in the intervening years). Given the presence of a law specifically covering your circumstances, it may be worth consulting with a local attorney to see what your obligations are. There may be mitigating circumstances, but they are not currently obvious to me if they're there. (conventional wisdom in the industry is that all private sales are "as-is" with no implied warranty of merchantibility and no recourse for a buyer who doesn't do due diligence -- I was shocked to find a statute specifically protecting buyers of salvage vehicles)
It's important to be absolutely clear on what is being sold. Using English translations may affect the outcome. Assuming "SoleTraderCompA" is an Einzelunternehmen, the sale would be an asset sale. The company isn't sold, because the company is legally identical to person A! Instead, person A makes an extensive list of all assets he's selling (goods, real estate, intellectual property, etcetera). "SoleTraderCompA" might be a trade mark, in which case the trade mark can be sold. Person B can also be an Einzelunternehmen, and as part of its business operations buys aforementioned assets from person A. But in general, any legal entity can buy the assets of person A, including a GmbH or AG.
He may be entitled to (part) of the deposit or he may owe you more money When you and he agreed you both entered a legally binding contract - you are obliged to sell the vehicle to him, he is obliged to buy the vehicle from you. The deposit is merely the first instalment of the payment for the vehicle with the balance being due on delivery. They are not refundable by default. He now wants to repudiate the contract and you have several options: you can refuse his repudiation and require him to complete the contract within a reasonable time. He probably won’t do this so when he doesn’t we move on to one of the other options. In essence, this is simply a warning shot that if he doesn’t complete the contract you will move on to item 2. you can accept the repudiation and sue for damages, these would include your lost rent, pro-rata of registration, insurance etc. from the time you would have sold to the time you do sell, any additional advertising, any difference in the price you ultimately get if it is lower than his offer etc. you can accept the repudiation in return for keeping the deposit in lieu of the actual damages. This in makes the deposit a liquidated damages amount and it must follow all the same rules, basically it must be a genuine pre-estimate of the damage you would suffer and not be so high that it amounts to a penalty. You can accept the repudiation and, as a gesture of goodwill, return some or all of the deposit.
user662852 has a good point -- whoever own the property has the right to make the rules. Is the property, land+construction in fact your's or does it belong to the HOA who just grant you access as a lease holder? Different states has different rules, but in my state it is illegal to maroon a property and there must be a access to public streets even when this necessitate passing over somebody else land. However that is irrelevant if the HOA owns the land your house is build on. I think you will have to look at your HOA agreement and see what it says.
Since the contingency is in the contract and has not been removed, if the purchase falls through due to not selling the existing property, they will get their earnest money back. That was the whole point of putting the contingency in the contract in the first place.
united-states Meet the word &quot;clawback&quot;. The general rule is that anything you do simply for asset protection can be undone by the government or courts. See the excellent book by Adkisson and Riser titled Asset Protection. First, the creditor is going to ask about all your assets including transfers. You have to answer truthfully, or else you open a whole other can of worms. The creditor and court will look at the character of these transactions. Suppose you sell a Ferrari worth $200,000 appraised value, to your brother for $155,000. However, it was an open eBay auction. Plaintiffs review it, hoping to find it was a &quot;vest pocket&quot; sale rigged to be unappealing to anyone but family. Wrong: it was a competent and earnest listing, which did attract 12 stranger bidders, and 3 bidders took up your offer to let them inspect the car. And according to Ferrari brokers that price was realistic given the soft market. Your brother simply outbid them, for nostalgia reasons. You did get the money and did use it to settle with creditors. That sale will be considered legitimate, because there's extensive provenance held in reliable third party hands (eBay). You sell the Ferrari for $100 to your brother. The court will presume that you intend to buy the car back for $100 after your legal troubles have cleared. This sale will be declared invalid, the Ferrari clawed back, and the creditor will be able to target that asset. The same thing can happen if you are insolvent, expect to enter bankruptcy, and pay a creditor &quot;out of turn&quot;. E.G. you settle your debt with the country club (so you can keep attending) before you pay your tax bill. The creditors, IRS or court can &quot;claw back&quot; that payment. That happened to my family's business once. Meet the word &quot;Penalties&quot;. OK, so what does a dumb crook do? They lie about their assets. They testify &quot;I crashed the Ferrari on the property, it was a basket case. I parted it out and chopped up the rest, threw it in the weekly trash week by week&quot;. And they can produce no documentation of any part sales. Meanwhile, plaintiff had already pulled DMV records and found it's currently registered... to the brother, with a DMV sale price of $100. They sent over a detective, who has pictures of it sitting in the brother's garage. And plaintiff gleefully maneuvered the dumb crook into a lie under oath. And now they face judicial punishment - including harsh fines, and jail for contempt of court or refusal to disclose. This bypasses the Fourth Amendment, so there is no trial for proof of guilt. But it's a government agency, not a private party All the moreso, then. Government has the right to bypass some of the rules for private parties - such as being able to do asset search, subpoena, or attach assets without filing a lawsuit. The IRS is probably the most experienced at pursuing asset hiders. They have &quot;their own&quot; Tax Court which does exclusively tax cases.