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retailrush

Selling property - advice please

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retailrush

Hi all

 

Have any of you ever sold a property using the "Land of Instalment Act" - basically the buyer pays a deposit and then pays off the purchase price monthly over a period not exceeding 5 years.

 

I would love to hear your comments on whether, in principle, this is something you would consider if you were selling a property.

 

Thanks

Wendy

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mellowred

Hi Wendy

 

I don't know anything at all about the "Land of Installment Act", but would be wary of this as you are running the risk of ending up with a bad debt.

 

I do know that if you rent a property out, or buy a house with existing tenants, you can't just throw them out out the street if they default on the rent, so just make sure you check all the legalities on that before signing anything.

 

You obviously have your reasons for wanting to do this, so you will have to weigh up the pros and cons, but would advise you to do a thorough credit check on the buyer - go back as far as possible.

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svw

We are busy selling our property at the moment and would definiately not consider an offer of this sort. Having looked at the act it seems to be very much in favour of the purchaser especially if there is a default on payment.

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MsPlod

Would not touch it with a VERY long barge pole... If you are selling - make sure that the boodle is all in your account through an appropriate financial institution.

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retailrush

Thanks for your comments - it basically confirms my own thoughts on the matter. I have also asked a number of my "back-up" friends who are lawyers, auditors and financial advisors and I am getting pretty much the same comments from all of them - "Not a first choice scenario" / "why should you finance someone who can't get finance from a bank", that sort of thing.

 

So thanks again everyone!

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lilythepink

Well, there is another perspective ... during the 1960's and 1970's, when homes were not just provided by the government, many people bought their properties on the instalment plan. Sellers who were battling to sell were only too happy to be getting good money for their homes and, hopefully, their properties properly maintained by buyers - as opposed to tenants who expect a landlord to do all the maintenance and the tenants then break their leases or don't pay rent.

 

I don't know that this perspective would be viable today as society lacks the commitment and morals it had back then.

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