How to Buy Back Tax Property (CFFL 556)
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hi.
Jack Butala: Welcome to the show today. In this episode Jill and I talk about how to buy back tax property. It seems basic, but-
Jill DeWit: There's a lot to it.
Jack Butala: -it's requested. It's a heavily requested topic let's put it that way.
Jill DeWit: Yes.
Jack Butala: Before I get into it let's take a question posted by one of our members on the landinvestors.com online community, it's free.
Jill DeWit: Okay. Aaron asks, hey, I'm getting ready to sell my first property in Oregon. The buyer is interested in a terms deal. I am wondering if the contract/purchase agreement needs any stipulation regarding specifically against growing marijuana as it is legal in think state, yet it still federally illegal. What protection do I need as a seller, does having an LLC or an addendum to the promissory note give any added security here? Is this even something to be concerned with?
Jack Butala: Yeah.
Jill DeWit: And my answer-
Jack Butala: Yes, it is something very to be concerned with.
Jill DeWit: Go for it Jack.
Jack Butala: Even though that sentence is incorrect. Yeah, you want to make sure if you ever signed a lease, and all of us have for apartments and stuff it says, hey, you agree to not do anything that's illegal in any way on this property. It's no different for land versus apartments or houses or anything else.
Then at that point, I'm not a lawyer, this is incredibly important and could sink-the-ship topic so you want to make sure you really get real legal advice on this, but it's not so much ... This is true for all kinds of legal advice. It's not so much philosophical as it is all right let's just say the guy buys a property. He's the owner now, not you. He's making payments and he's doing some illegal stuff on the property. Are you responsible? If the legal answer is no, no, no you're not responsible at all, you don't just close the file and forget it and go on your way. You play it through in your head.
Let's say a guy really is making drugs on a property that I sold him.
Jill DeWit: But it's terms, this is the whole thing it's a terms thing is why.
Jack Butala: I understand.
Jill DeWit: Yeah, no, no I'm telling not you Jack.
Jack Butala: Oh, oh.
Jill DeWit: I'm telling the listener. The reason we're getting worried about this and talking about it is because it's a terms deal because you still own the property. They're making payments to you, once you sell the property it's a whole different ballgame.
Jack Butala: It's sold.
Jill DeWit: That's what I mean.
Jack Butala: The property is sold to the guy he's just making payments. Just like a house.
Jill DeWit: Right.
Jack Butala: You purchase the house, you're making payments to the bank, he purchased the land, he's making payments to you, who's acting as a bank, he's responsible for the house and what goes on there.
Jill DeWit: Right.
Jack Butala: If a bank like Bank of America let's say gave this person a mortgage and then all kinds of illegal stuff went down, the cops are not going to show up at the Bank of America's door and say, what the heck-
Jill DeWit: Right.
Jack Butala: -you let this go on.