re: Legaility question regarding selling a house for more than its worth

How do you define "worth"? Fair Market Value is generally seen as the amount reached by two unrelated parties in an arms length transaction with neither party under duress.

So I don't think you have a problem because the purchaser agrees to buy something more than it's worth.

I do think you may have two issues to consider.

1) The owner financing part - there are some new regulations that you might want to review.

2) Is this a trailer? I seem to recall there being some sales rules with manufactured homes.