Can a property be sold without notifying the lender of such a sale?

UPDATED: Nov 28, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Nov 28, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a property be sold without notifying the lender of such a sale?

As a private lender we have placed a lean on the property. However, the property owner has sold the property to another party without our consent or knowledge. Is this legal? Can we go after the attorneys that have closed the sale of the property? The mortgage on the property was not assignable. Furthermore, the sale was structured with a close that upon the sale of the property to a new owner, the Lender, which is us, responsible for payment of then outstanding real estate taxes. We ended up paying them to prevent the county of taking over the property and whipping us out. Is this fraud?

Asked on November 28, 2011 under Real Estate Law, New Jersey


Michael D. Siegel / Siegel & Siegel, P.C.

Answered 11 years ago | Contributor

Whether it can be sold without your consent turns on the mortgage document you have filed.  Most prevent it, but I did not see yours.  Your rights are limited to foreclosure.  If this is a commercial property, you can also sue on the Note at the same time.  It is not a fraud.  That is not your claim.  I have handled these types of matters.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption