To finance or not to finance; that is the question
With regard to the new seller financing laws, this excerpt was taken from our latest realty digest posting today. Be careful if you plan to owner finance a property. Consult an attorney or your real estate agent if you are unsure.
According to TAR digest, "Currently, owner financing is regulated by both state and federal law. The two exceptions most encountered would be 1) if the seller currently lives in the house; or 2) the seller is financing a family member to purchase the home. We would strongly recommend that the seller speak with an attorney to determine whether this transaction is permissible at this time in Tennessee. Also, in the future, we would recommend that if a seller states that he can do seller financing, find out if he currently lives there. If he does not, ask if he has a license from the Tennessee Dept. of Financial Institutions. If he does not, then we would NOT recommend advertising it as seller financing. " TAR Digest. Oct. 18, 2010 online
ALSO remember that this only applies to residential real estate. By statute, the Tennessee act defines residential real estate as "any real property located in this state, upon which is constructed or intended to be constructed a dwelling." Tenn. Code Ann. 45-13-105(26).
According to TAR digest, "Currently, owner financing is regulated by both state and federal law. The two exceptions most encountered would be 1) if the seller currently lives in the house; or 2) the seller is financing a family member to purchase the home. We would strongly recommend that the seller speak with an attorney to determine whether this transaction is permissible at this time in Tennessee. Also, in the future, we would recommend that if a seller states that he can do seller financing, find out if he currently lives there. If he does not, ask if he has a license from the Tennessee Dept. of Financial Institutions. If he does not, then we would NOT recommend advertising it as seller financing. " TAR Digest. Oct. 18, 2010 online
ALSO remember that this only applies to residential real estate. By statute, the Tennessee act defines residential real estate as "any real property located in this state, upon which is constructed or intended to be constructed a dwelling." Tenn. Code Ann. 45-13-105(26).
