QUESTION
Can a buyer force the seller of a property to use a particular mortgage lender?
Asked on Mar 11th, 2013 on Estate Planning - Utah
More details to this question:
Can a property seller force a buyer to use a specific mortgage lender they've chosen before they will entertain any offer from the buyer?
11 ANSWERS
Real Property Attorney serving Utica, MI
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Douglas A. Tull, P.C. Attorney at Law
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Generally I would think not - although for there to be a meeting of the minds on an Agreement to sell/purchase the property, if he is insisting and you are resisting, you may not end up with an Agreement - I don't think it is illegal for him to do so, but very questionable - it should not matter to him unless he has some interest (i.e. will receive some kickback) from the particular mortgage company he wants you to use.
Answered on Mar 14th, 2013 at 2:20 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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I suppose that if this is something that is negotiated into the purchase agreement, it is possible. I am not sure it is something *I* would agree to. But if it works for both parties, and if the seller is willing to make some concessions in other areas, maybe... There is no law that would prevent this.
Answered on Mar 13th, 2013 at 5:36 AM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Force? No. Walk away from the deal. Can the seller make a sale contingent on buyer using a particular lender? Interesting question. If the lender is Guido, who works the street corner and charges daily interest, probably not void as against public policy. If the lender is Bank of America, maybe. There would always be the question of why the seller cares, and the probable answer would be a kick-back, which must violate some law. But the great thing about being a buyer these days is there's property for sale everywhere; if a seller is making headaches, walk away from the deal.
Answered on Mar 12th, 2013 at 1:35 PM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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No. That is up to the buyer.
Answered on Mar 12th, 2013 at 1:34 PM
Legally, a seller cant force a buyer to use a particular lender. Many home builders will encourage buyers to use certain lenders, though. Likewise, a buyer cant force a seller to entertain any offer (unless there is unlawful discrimination involved). So, it is a matter of negotiation.
Answered on Mar 12th, 2013 at 1:33 PM
Estate Planning Attorney serving Marquette, MI
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The Wideman Law Center, P.C.
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No they cannot. However, if it is a private sale, I would think the Seller would just reject the offer if he/she did not like the terms or conditions.
Answered on Mar 12th, 2013 at 1:33 PM
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A seller. An set whatever terms they want that do not violate the law. For wax ample they cannot discriminate based upon race. They can decide to only entertain cash offers, etc. the answer is yes. If it is after the offer is accepted that may be different.
Answered on Mar 12th, 2013 at 1:33 PM
Sounds suspicious to me. Generally in business law, one party can not interfere with the activities between two other entities. Since the mortgage is a contract between the lender and the buyer, a property seller should not be able to influence that agreement. However, if this is a very large tract of land such as for a development, obtaining adequate financing may be an issue and having a lender already established may make the sale easier to conclude.
Answered on Mar 12th, 2013 at 1:29 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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They dont have to accept your offer. If that is one of their conditions to accepting an offer, then yes the seller can do that. Of course, it may be difficult to get offers on that basis. Make your offer and tell them you will get your own lender and see what happens.
Answered on Mar 12th, 2013 at 1:29 PM
Not unless the contract requires. Generally, the seller has no control over the buyers lender, the sellers concern is focused on being paid the contract amount. Always begin by referring the sales contract.
Answered on Mar 12th, 2013 at 1:28 PM
Estate Planning Attorney serving Provo, UT
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Randy M. Lish, Attorney at Law
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No, not unless you sign a contract agreeing to do so.
Answered on Mar 12th, 2013 at 1:27 PM