If I bought a clothing store and have a note with the seller to pay $162 a week until paid off, is the business technically theirs if it is not paid off, even though everything is in my name?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I bought a clothing store and have a note with the seller to pay $162 a week until paid off, is the business technically theirs if it is not paid off, even though everything is in my name?

I signed a contract with seller, changed everything into my name and even changed the name of the business.

Asked on May 4, 2015 under Business Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It depends on the terms of the agreement for the sale of the business. If the agreement was that title/ownership only changed when the last paymentis made, then you would not own it until/unless you pay off the loan. Or if the note is secured by a security interest in the  business, they can take it  back (like foreclosing or repossessing) if you default. But if the agreement was simply that in exchange for the note, you get the business, then it should be yours--but they can sue you for an unpaid amounts.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption