If a property is under contract as "seller financed" is it possible for the last buyer to enter into an option to buy contract with a new buyer?

The current owner of a property is under contract making monthly payments with the previous seller/title holder who is financing the loan. The property under contract is not occupied by the current owner. Another party is interested in buying the property, but desires to do research first, and would like to enter into a 6-12 month option to buy contract with the current owner. Is it possible for two contracts to exist on the same property?

Brad B.

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Typically interests in real estate are assignable - meaning either the buyer or the seller could sell their rights under the contract to another party. An interested buyer could also enter into a contract where the second buyer have the right to buy the property even though the seller doesn't have full legal title to the property yet. Assuming there is no contractual provision restricting the assignment of rights under the contract, Buyer I and Buyer II could enter into an agreement that states that Buyer II would have the option to purchase Buyer I's interest under the contract. If Buyer II executed the option, then Buyer II would start making the payments are required by the contract. It's important to note that Buyer I would still be liable to make the payments to seller if Buyer II failed to do so. As an agreement between Buyer I and Buyer II does not change the contract between Buyer I and Seller. If the Seller is involved, the original contract could be amended or assigned to Buyer II. As an alternative, Buyer I and Buyer could enter into an agreement where upon Buyer II's executing their option to buy the real estate, Buyer II would provide funds to Buyer I, who would in turn pay Seller what is owned under the contract. Buyer I would then be obligated to convey the real estate to Buyer II. Depending on the facts there might be other alternatives or possible solutions. Each matter depends on the facts. An attorney would be able to review the transaction and make a determination of what the best course would be given the client's needs.