Right in the contract in reads:
“Grantee herein shall be prohibited from conveying captioned property for a sales price of greater than (120% of my purchase price) for a period of 3 month(s) from the date of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater than (120% of my purchase price) for a period of 3 month(s) from the date of this deed. These restrictions shall run with the land and are note personal to grantee.
This restriction shall terminate immediately upon conveyance at any foreclosure sale related to a mortgage or deed of trust.”
It doesn’t really concern me as it will probably take more than 90 days for me to sell it. I think it is unfair for sellers to do this, especially on properties like this. My repair costs are over 20% of the purchase price, so I cannot sell it for any profit over the next 3 months.
Anyways, I thought this was interesting. I don’t know if it is even enforceable? Maybe if the lender catches it they may not loan on it? Maybe you could record a first trust deed and foreclose on it?
The house is a 4 bedroom 2 bathroom 1,400 sq ft house on a lot that is almost 1 acre. The seller was Fannie Mae. This is a little bit outside of our normal area of business and we followed it because an agent we work with told us we should put an offer in. Two weeks later the bank decided they wanted to work with us.
Carport (this will be converted to a garage)