Is it legal to charge pre-payment penalty for seller financed convenience store

Asked over 1 year ago - San Antonio, TX

I want to know if the seller of a convenience store can charge the buyer a pre-payment penalty since it is seller financed. The seller also has outstanding property tax liens which he is currently paying off. Does this have to be paid off at closing or can a separate agreement be made to where the seller continues his agreement with the tax office.

Attorney answers (1)

  1. Steven John Clausen

    Pro

    Contributor Level 16

    1

    Lawyer agrees

    Answered . The terms of the document must be reviewed in order to answer your question. If the documents do not specifically provide for a prepayment penalty then seller cannot charge it.

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