American conveyancing!! (sigh!)

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  • #38596
    keithh
    Participant

    Nice one for a Friday!

    A claimant has sold their property in America (Arkansas). The contract confirms that possession transfers on 27/5/11, however the buyer is contracted to pay $500 earnest money per month for the next 10 years until the sale price is paid off. In the event of default buyer can chase for outstanding sum.

    Problem: My clmt is receiving $500 per month – what do I do with it? Common sense says capital?

    HELP!!

    Cheers, Keith

    #108924
    John Boxall
    Participant

    Well, it may be capital – but……

    Coul;d it be that the capital value will be the right to recieve the income for the next 10 years, rather than whatever the property sold for?

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #109016
    keithh
    Participant

    Hi John,

    Thanks for your reply . . . how would this translate onto this chap’s claim?

    I’m still stumped!!

    Cheers, Keith

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