If I am financing the sell of my house, what should I do if the buyer is not making his payments?

I am financing the sell of my house. The buyer is late with his payments 3
months. Do I need to take legal action or just sell it to someone else since I
still have the deed. Texas

Asked on October 11, 2017 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You need to take legal action to clarify rights and ownership. Or rather: you can try simply selling to another and wil be fine if the current buyer does not try to take legal action or otherwise object. But if he does, things could get expensive and messy. The better way to proceed is by taking legal action first, to clarity everyone's rights.
Ideally, you would sue the buyer for the money due under the purchase agreement and, in the alternative (if he does not pay) for a court determination that the buyer is in breach, the  contract terminated, and that you may thereore sell to others. That way, you will get your money and/or you will get a declaratory judgment (court determination) giving you a clear right to sell the property to another and declaring the current agreeement or contract terminated. In that latter case, you could then go forward confidently.


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