Comments on: Can I pay off a land contract in Arizona?

By: Terry S

Terry S — Sat, 21 Nov 2009 13:21:39 +0000

Call the seller and ask if there is a pre-payment penalty for paying off the land contract.

By: Business Mom

Business Mom — Sat, 21 Nov 2009 12:57:51 +0000

double check that there is no pre-payment penalty.

i suppose he could refuse, but i am not sure why he wouldn’t want the money in his pocket…so, if you do not have a pre-payment penalty clause…then offer to pay it off.

good luck

By: MJ

MJ — Sat, 21 Nov 2009 12:49:37 +0000

Unless your contract states otherwise, you can always pay off a contract. At worst, there would be a prepayment penalty but that still doesn’t prevent you from paying it off.

However, without reviewing the contract terms, I would suggest that you contact an attorney or seek legal advice, even if it’s prepaid legal or legal aid in Arizona. My expertise is in a different state. My main concern would be them trying to collect the entire term’s interest from you for you to get a release/deed to the property without you understanding the payoff. That would negate the benefit of early payoff to you.

I assume also, that this is a relatively high rate of interest v. your other debts?