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Contract for Deed again

Asked Jun 9, 2006, 08:49 AM — 2 Answers
I don't understand.
We own 20 acres. There is another 20 acres next to us that our neighbor wants to sell. They are asking way more than the value. So we did some research and found out that it is a contract for deed. We contacted who the deed is with and he said he will sell the property to us for what is owed by our neighbor living there. That person has not paid for several years. They are being served papers soon hopefully.
Once they are served do they still have the right to sell the property?

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Dr D's Avatar
Dr D Posts: 702, Reputation: 630
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#2

Jun 9, 2006, 09:27 AM
The lienholder will prepare, or have an attorney prepare an Affidavit Of Forfeiture, which will be recorded and then delivered to your neghbor, who is in default. The percentage (determined by original purchase price) of equity that your negbor has in the property will determine the length of the forfeiture period. Your neighbor has this time to cure the default plus pay any Forfeiture/ legal fees incurred by the seller. During this period, I believe that your neighbor can sell the property to a third party, provided that the seller get any money due him. Check your state statute regarding Contract For Deed/Land Contract and it will give you all the details. Check your local public records for a copy of this Contract For Deed, and it might give you some idea of how long the forfeiture period might be.

I am not a lawyer, but I think my advice is close enough for horseshoes and hand grenades.
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Fr_Chuck's Avatar
Fr_Chuck Posts: 72,597, Reputation: 37026
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#3

Jun 9, 2006, 12:14 PM


They will have to be served and evicted, until the entire legal process ( a few months) is over, the land is not free to buy. And of course the fact he let them stay for a couple of years not paying can really cloudy up the legal issue if they want to fight it.

And if you buy this type of property, buy title insurance for sure to protect yourself if they come back in a few years and sue for a lien on the property.
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