Can You Buy and Sell a House Without a Mortgage Using an Instalment Contract?
This is a question that often gets asked, when logically the answer should be obvious. As with any sale, there is a buyer and there is a seller. And, if we are using an instalment contract to extend the period between exchange and completion of sale, then one person is buying and the other person is selling. That should be the answer in a nutshell, but let’s examine further why the question is asked in the first place. This question is usually coming from a property investor who would like to concurrently do both, namely have a contract to purchase while offering a contract of sale to someone else. If that seems not to make sense, it’s because the reasoning behind it is that the investor wants to benefit from the positive cash flow stream by managing the transaction on behalf of the owner and the future buyer. Since Rick Otton and I released this concept in 2007 using purchase and sale option agreements, the penny has finally dropped that having legal title in one’s own name is not rea
