Notice to Prior Secured Party of Purchase Money Security Interest

Notice to Prior Secured Party of Purchase Money Security Interest. As a landlord, or creditor leasing out a house, building, vehicle etc. you know there is always the chance that your lessee could damage your property, or even skip out early on the lease.

Therefore you make it common practice to request a security deposit prior to releasing the property.

So what happens when you purchase property that is currently being leased out?

Well if you plan to keep the agreement with the present lessee who has already paid their deposit, you will need to establish a new contract and have the security interest transferred over to you.

You don’t want to procrastinate on getting started with this step.

Make sure you are protected by sending this letter out ASAP!

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NOTICE TO PRIOR SECURED PARTY

OF PURCHASE MONEY SECURITY INTEREST

 

Date: _______

To: ______[Prior Secured Parties]_____

 

This is to notify you that the undersigned has or expects to acquire a purchase money security interest in and to the following described collateral:

[Describe]

           _______________________________________                                                                                                                                         _______________________________________                                          

           _______________________________________                                               

Said collateral shall be sold to:

 

               _________________________________

                                           Name

 

               ______________________________________

                                         Address

  

               ______________________________________ [Debtor].

Insofar as you have an existing security interest on record as against the same type collateral, this notice shall inform you of our priority claim to the property being sold.

 

Very truly,

 

     ______________________________

 

Related Pages
Note Secured by Deed of Trust Form
Notice and Acknowledgement of Service Rate Increase Letter
Notice of Right of Recission

Other Pages You Might Like
Promissory Note Long Form
Promissory Note Installment with Acceleration Clause
Promissory Note Installment


Exit Notice to Prior Secured Party of Purchase Money Security Interest - See More Sample Business Letters