If Iam purchasing a seller financed home and the sellers wants to restrict me from renting or having a second lien on this home until the first mortgage is paid off, is this legal?
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If Iam purchasing a seller financed home and the sellers wants to restrict me from renting or having a second lien on this home until the first mortgage is paid off, is this legal?
Asked on March 13, 2012 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
From what you have written, if there is a seller carryback loan for the parcel that you are buying, the sellers can restrict you from renting out the home or having a second mortgage on it until there loan is paid in full.
There is nothing illegal or improper by the sellers' request to protect the security that they are loaning on under the laws of all states in this country.
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