I would like advice on buying a house here in Sydney Australia and would like to find out if it was possilble to sell if someone dies or leaves while paying their half of the house thank you robin170248
2006-11-30 19:24:44 · 3 answers · asked by robin170248 2 in Business & Finance ➔ Renting & Real Estate
You can sell if the other person dies or doesn't pay their part of the mortgage for whatever reason. It is a good idea to have some kind of written contract that sets out the understanding that the parties have with regards to their obligations in paying their share of the mortgage (a memorandum of understanding).
When two or more people enter into a mortgage, they are listed on the title as being tenants in common.
You could also buy out their share of the mortgage (a transfer of land) and then you will be the only person named on the title.
If they die or become sick and can't pay their mortgage because of financial hardship keep in mind that the bank that gave you the mortgage would have required, as part of the mortgage conditions, the purchasers to take out mortgage insurance which covers the person's payments if they are unable to make the payments. This might last for 6 months or so.
Also please keep in mind that purchasing a house costs thousands of more dollars on top of what the actual purchase price is. And it costs thousands and thousands of dollars to transfer (sell) a property. So please please please think long and hard, do your research and make sure that you trust the person who you are buying with! Oh and also keep in mind that it is highly likely that you may have to sell at a lower price than what you purchased the property for, especially if you are desperate to get rid of the burden of having to pay for someone else's share of the mortgage for any length of time.
2006-11-30 23:19:07 · answer #1 · answered by Sarah B 2 · 0⤊ 0⤋
If you sell the house for the same amount (or more) than you owe, then its fine. you still need to get a loan or bond on the new house especially if you still owe on your old house.
2006-11-30 19:46:16 · answer #2 · answered by chickyboo222 5 · 0⤊ 0⤋
You can sell any property in Sydney with money still owing if that's what you mean.
2006-11-30 19:27:17 · answer #3 · answered by anthony_tr6 2 · 0⤊ 0⤋