SELLER BEWARE
 

With regard to the general public, the Oklahoma Real Estate Commission recommends that sellers secure competent advice and counsel before becoming involved in a real estate contract.

The admonition is much more urgent when a seller is exposed to the possibility of some of the following typical financial arrangements or terms which could jeopardize the seller financially:

25 Cash to buyer;

Buyer walk-a-way;

Equity sharing;

Mortgage subordination clause;

Note without a mortgage;

Agreement to withhold recording a mortgage;

Seller to secure new loan prior to sale or closing;

Exchange of loan proceeds for items such as Treasury Bond;

Certain lease purchase plans;

Offer to purchase without valid earnest money deposit;

Promissory note as earnest money;

Contract addendum or terms not incorporated in the contract or listed as an addendum;

Rebate or zero coupon arrangements (particularly if not shown in the contract)

Concealing information from a lending institution.

The legitimate purchaser will not object to a seller obtaining competent financial and/or legal advice before the seller enters into a contract relating to real estate. Some of the special arrangements for financing may be appropriate and legitimate if properly structured and the parties all know the inherent risks. No effort is made to discourage the use of innovative or creative financing.