Due to late payments ,late fees, three months behind on an unrecorded contract for deed I received letter in the mail stateting a foreclosure is not necessary they simply declare the contract null and void and giving me until April 1 2008 to pay off the note. I purchased the land in July of 2001. I am self employed plumbing contractor in the new house market and been hung out for the wolves in this market doing all I can paying every 3 months , I understand the seller being upset but I just want to know my rights . Texas is the state in which this contract for deed is . And in the event of failure to comply with any terms hereof by Buyer, Seller shall be entitled to any or all of the following remedies .
a. seller shall be released from all obligations in law or equity to convey said property , and buyer shall foereit all rights thereto .
If the property is used or to be used as buyers residence the provisions of sections 5.061-5.063 of the Texas Property Code shall apply to the default of the buyer.

6. if the contract is terminated because of buyers default , Buyer will immediately surrender possession of the property to seller . If buyer fails to do so, Buyer will become a tenant in sufferance of seller , subject to an action for forcible detainer .
That a little more of what the contract says. Also wondering about section 5.077 of the Texas property Code . All I received are tax statements for the property . Thanks to all for the thaughts and to your time.

Welcome to AMHD. I suppose you are saying the seller will no longer accept installment payments and wants the note paid in full, and you will receive a deed. It is difficult to explain your rights if they are set forth on a contract which cannot be read. You may want to indicate your state and additional language of the contract if you would like an informal opinion. Or take your contract to an attorney for the real deal.

Your rights are specified in the contract. But generally if you are in default of the contract, the seller can declare the contract void and require full payment or reclaim the property.

Your rights are specified in the contract. But generally if you are in default of the contract, the seller can declare the contract void and require full payment or reclaim the property.
Due to late payments ,late fees, three months behind on an unrecorded contract for deed I received letter in the mail stateting a foreclosure is not necessary they simply declare the contract null and void and giving me until April 1 2008 to pay off the note. I purchased the land in July of 2001. I am self employed plumbing contractor in the new house market and been hung out for the wolves in this market doing all I can paying every 3 months , I understand the seller being upset but I just want to know my rights . Texas is the state in which this contract for deed is . And in the event of failure to comply with any terms hereof by Buyer, Seller shall be entitled to any or all of the following remedies .
a. seller shall be released from all obligations in law or equity to convey said property , and buyer shall foereit all rights thereto .
If the property is used or to be used as buyers residence the provisions of sections 5.061-5.063 of the Texas Property Code shall apply to the default of the buyer.

6. if the contract is terminated because of buyers default , Buyer will immediately surrender possession of the property to seller . If buyer fails to do so, Buyer will become a tenant in sufferance of seller , subject to an action for forcible detainer .
That a little more of what the contract says. Also wondering about section 5.077 of the Texas property Code . All I received are tax statements for the property . Thanks to all for the thaughts and to your time.

First, please don't add a follow-up by editing the original post. It makes it difficult to follow the thread. Also no need to post the same thing multiple times.

Second the answer to your question is in what you posted. The seller doesn't seem to have the right to require that you pay in full, but he does have the right to evict you.

[QUOTE=mrplumber]... if the contract is terminated because of buyers default , Buyer will immediately surrender possession of the property to seller . If buyer fails to do so, Buyer will become a tenant in sufferance of seller , subject to an action for forcible detainer .


That's the language that sums it up - it appears you are in default, the contract is legally terminated, you must surrender possession, the seller can evict you.

Are their cure days or procedures that can keep that from happening . So for just phone conversation . Thanks

Keep what from happening? The language of the contract is clear. You are in default, the seller is declaring you in default and telling you either pay me in full or vacate. That he's given you an option to pay the balance is being nice on his part. He doesn't have to do it.

are their cure days or procedures that can keep that from happening . so for just phone conversation . thanks


Sure - pay what you owe him, stay current, hope he gives you a second chance.

All your thaughts are greatly appreciated , thanks

Ok, once you are behind, they can declare the entire loan due and payable. So if they will not work it out, he has the right to declare it due.

Once you are in default and he declares you in defaut ( and you will be after the date he gave you to pay in full) this reverts to a month to month rental, *** but he is not required to rent to you, but can merely evict you.

So you need to try and work something out, or be ready to move.

Even if theirs no certified mail saying anything about being in default. And do the Texas property codes mean anything in this case

even if theirs no certified mail saying anything about being in default. And do the Texas property codes mean anything in this case


Once again - there is a contract and you have violated it. I see nothing to indicate the contract is contrary to Texas law. If you don't believe what has been posted consult with an Attorney.

Pay the man his money or get evicted.

If you don't honor their request to move, I would assume you could in your eviction heaing force them to send you a certified letter, which would allow you a little more time before they can throw you out.
But only payment of the debt will change the default status.

The entire note or just the payments and late fees making it default

the entire note or just the payments and late fees making it default


That's up to the landlord - at this point he can demand it all, refuse it all and evict you, allow you to bring it up to date. It's his call; he's in the driver's seat.

Basically you have no rights. By defaulting on contract, you put yourself at the mercy of the seller. If he declares that you are now a tenant, and seeks to evict, you MAY be able to get out of the eviction (temporarily) by bringing your payments up to date. However, since you would then be considered a month to month tenant, he can terminate your tenancy at any time.

In AZ, and I would think in other states, when a Contract For Deed is in default, the seller must record, and serve the buyer with an Affidavit Of Forfeiture. The forfeiture period is determined by the percentage of equity that the buyer has in the property. The greater the equity, the longer the forfeiture period. Whether your state law provides for acceleration of the debt (all due and payable) or if that is addressed by the Contract For Deed, I don't know. For your sake, you really need to see a good Real Estate attorney.

In AZ, and I would think in other states, when a Contract For Deed is in default, the seller must record, and serve the buyer with an Affidavit Of Forfeiture. The forfeiture period is determined by the percentage of equity that the buyer has in the property. The greater the equity, the longer the forfeiture period. Whether your state law provides for accelleration of the debt (all due and payable) or if that is addressed by the Contract For Deed, I don't know. For your sake, you really need to see a good Real Estate attorney.


He posted the language in the contract and it does not appear to say anything about "the greater the equity, the longer the forfeiture period." It pretty clearly spells out the terms and conditions - are they in violation of his State Law? That I don't know. I do know all of this foot dragging is not helping OP's cause.

I believe that the Forfeiture period is dictated by AZ statute, and determined by the percentage of equity of the original sales price. If a provision of a contract is in conflict with state law it cannot be enforced, but does not void the entire contract. I don't know the laws of Texas, but this person should seek the advice of legal counsel.

In all states I have lived and have owned property, there is no requirement of service, since as soon as the contract is in default it would change into a rental agreement, if those are the terms listed in the contract.

 
This is the language I talking about even if its not in the contract thanks for everybodys knowledge just trying to learn as much I can before I hire an attorney don't want to look like a idiot in person :
Contract for Deed
An Introduction to the Law Governing Contracts for Deed in Texas
By Ken East
NOTE:   House Bill 1823 went into effect September 1, 2005, and, to some extent, supercedes the law outlined in the following article.  Among other things, H.B. 1823 provides that much of the existing law governing contracts for deed will now also apply to “lease with option to buy” transactions.  Also, the new law prohibits a seller from selling a house through a contract for deed if the property is encumbered by a preexisting lien, although there are some exceptions.  For more details, please consult the text of H.B. 1823 or feel free to contact our office.
Subchapter D of Chapter 5 of the Texas Property Code governs contracts for deed and was greatly revised in 2001 when the governor signed Senate Bill 198 on June 13, 2001.  The bill, prompted by tragic stories of contract for deed home buyers who lost everything following the tornado that struck Fort Worth on March 28, 2000, took effect September 1, 2001.  This memo outlines the Property Code's major provisions with respect to contracts for deed.
I.
APPLICATION
The still relatively new law applies to transactions “involving an executory contact for conveyance of real property” used or to be used as the purchaser's or purchaser's relative's residence.  The law cannot be waived except by purchasers who are related to the seller.  The statute contains no definition of “executory contract for conveyance of real property,” but the House Research Organization's bill analysis states, “An executory contract is a contract in which one of the parties promises to perform some future act, such as pay an amount of money or purchase a piece of land.  One form of an executory contract is a contract for deed, which is an agreement between a buyer and seller of land, in which the seller keeps the title and all rights to the land until the customer pays the land's price in full.”
II.
SUBSTANTIVE RIGHTS GIVEN TO PURCHASERS
In addition to the numerous notice and disclosure provisions discussed below, purchasers are afforded a number of substantive rights by the new legislation.
A.  Fourteen-day cancellation period.  Purchasers have a right to rescind and cancel the contract for any reason up to fourteen days after the date of the contract.  If a purchaser exercises his or her right to cancel, the Seller must refund all money and cancel any security interest arising out of the contract.
B. 30-Day Cure Periods.  Purchasers may avoid the seller's remedies of rescission or of forfeiture and acceleration by complying with the terms of the contract on or before the 30th day after the date the seller gives notice of default.  (Note:  60-Day Cure Periods may still apply to any contracts entered into between September 1, 2001, and September 1, 2003.) 
C.  Equity Protection.  Sellers may not enforce remedies of rescission or of forfeiture and cceleration against a purchaser who defaults after having paid 40 percent or more of the amount due or the equivalent of 48 monthly payments.  In such cases, the seller may appoint a trustee to sell the purchaser's interest in the property at public auction pursuant to the provisions of section 5.066.
D.  Foreign Language Requirement.  All documents are to be in the language used by the parties during pre-contract negotiations.
E.  Insurance.  Insureds (sellers) are required to inform their insurers, within 10 days of obtaining coverage or entering in to an executory contract on the covered property, of the existence of the executory contract and the term of the contract and the name and address of the other party to the contract.  Thereafter, the insurer shall disburse all proceeds to the purchaser and seller, jointly, and such proceeds shall be used to repair, remedy, or improve the subject property.
F.  Title Transfer.  The seller shall transfer title to the property to the purchaser within 30
Days of the seller receiving the purchaser's final payment.  Failure to do so subjects the seller to liquidated damages of $250 per day up do 90 days after final payments and $500 per day thereafter, and reasonable attorney fees.
G.  Limit on late fees.  The contract may not contain a term that imposes an additional late-
Payment fee that exceeds the lesser of (1) 8% of the monthly payment, or (2) the actual
Administrative cost of processing the late payment.
H.  Right to pledge property interest.  The contract may not contain a term that prohibits the
Purchaser from pledging the purchaser's interest in the property to obtain a loan to improve the property.
I.  No prepayment penalties.  The contract may not contain a term that imposes a repayment
Or any similar fee if the purchaser elects to pay the entire amount due under the contract before the scheduled payment date under the contract.
III.
NOTICES
A major aspect of the new law involves notices and disclosures sellers will be required to
Deliver to purchasers.
A.  Pre-Contract Disclosures.  Prior to the purchaser signing the contract, the seller must
Provide a number of disclosure documents.
1.  Property Condition Disclosures.  Failure to provide any of these disclosures
Constitutes a DTPA violation and entitles the purchaser to cancel and rescind the contract and receive a full refund of all payments made to the seller.
a.  Survey.  A survey, which must have been completed within the past year, or plat of a current survey;
b.  Encumbrances.  Legible copies of any documents describing any encumbrance or other claim, such as deed restrictions or easements;
c.  Seller's Disclosure.  A property condition disclosure statement in the form promulgated by the statute;
d.  Utilities.  If the property is not in a recorded subdivision, a disclosure regarding utilities; and
e.  Advertisements.  If the seller advertises the property, the advertisement must disclose information regarding the availability of water, sewer and electric service.
2.  Tax and Insurance Disclosures.  Failure to provide any of these disclosures
Constitutes a DTPA violation and entitles the purchaser to cancel and rescind the contract and receive a full refund of all payments made to the seller.
a.  Tax Certificate from the collector for each taxing unit that collects taxes on the property;
b.  Insurance.  A legible copy of any insurance policy, binder, or other evidence indicating:
I.  names of insurer and insured;
ii.  description of the property insured; and
iii.  the amount for which the property is insured.
3.  Financing Terms.  The seller must provide a written statement disclosing the
Following:
a.  Purchase price;
b.  Interest rate;
c.  Dollar amount of the interest to be charged for the term of the contract;
d.  Total principal and interest to be paid under the contract;
e.  The late charges, if any, that may be assessed under the contract; and
f.  A statement of the fact that the seller may not charge a prepayment penalty or any similar fee.
B.  Disclosures to be given in, or contemporaneous with signing, the contract.
1.  Oral Agreements Prohibited.  In the contract itself or in a separate document, the
Seller shall include a statement, printed in 14-point uppercase or 14-point boldfaced type, in the statutorily-prescribed form, including signature blocks for both purchaser and seller, advising of the fact that the contract must be in writing and cannot be altered by oral agreements.  Failure to do so constitutes a DTPA violation and entitles the purchaser to cancel and rescind the contract and receive a full refund of all payments made to the seller.
2.  Right to Cancel - Notice.  In the contract itself, in immediate proximity to the space reserved for the purchaser's signature, the seller shall include a statement, printed in 14-point uppercase or 14-point boldfaced type, in the statutorily-prescribed form, advising the purchaser of his or her right to cancel the contract at any time within the following two weeks.
3.  Right to Cancel - Form.  When the purchaser signs the contract, the seller shall
Provide the purchaser a statutorily-prescribed form with instructions he or she can use to cancel the contract in the following two week period.
C.  Post-Contract Disclosures.
1.  Annual Accounting Statement.  In January of each year, the seller shall provide
The purchaser a written statement containing the following information (failure to do so entitles the purchaser to liquidated damages of $250 per day for each day past January 31 and reasonable attorney fees):
a.  the amount paid under the contract;
b.  the remaining amount owed under the contract;
c.  the number of payments remaining under the contract;
d.  the amounts paid to taxing authorities on the purchaser's behalf if collected by the seller;
e.  the amounts paid to insure the property on the purchaser's behalf if collected by the seller;
f.  if the property has been damaged and the seller has received insurance proceeds, an accounting of the proceeds applied to the property; and
g.  if the seller has changed insurance coverage, a legible copy of the current policy, binder or other evidence that satisfies the requirements of Section 5.070(a)(2).
2. Notices of Default.  The sections dealing with notices of default are poorly drafted and are confusing.  They seem to require some redundancy in the notices.  Generally, a seller's notices of default must be in writing, printed in 14-point uppercase or 14-point boldfaced type, and must be delivered to the purchaser by registered or certified mail, return receipt requested.
a.  On “a separate page,” the seller must provide the following notice:
NOTICE YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date) THE SELLER HAS THE RIGHT TO TAKE POSSESSION OF YOUR PROPERTY.
The notice must also:
(1) identify and explain the remedy the seller intends to enforce;
(2) if the purchaser has failed to make a timely payment, specify:
(A) the delinquent amount, itemized into principal and interest;
(B) any additional charges claimed, such as late charges or attorney's fees; and
(C) the period to which the delinquency and additional charges relate; and
(3) if the purchaser has failed to comply with a term of the contract, identify the term violated and the action required to cure the violation.
b.  In addition to the foregoing notice, a seller desiring to enforce a remedy
     of rescission or of forfeiture and acceleration must give notice of
(1)  the seller's “intent to enforce such a remedy under [section
          5.064.]”; and
(2)  the purchaser's right to cure the default within the 60 day period described by section 5.065.
c.  Equity Protection.  Note that different notices and procedures, including
A 60-day notice of default, a 21-day notice of sale, and a trustee's public auction, apply if the purchaser has made 48 monthly payments or has paid 40 percent or more of the amount due under the contract.  See § 5.066 and Tex. Prop. Code § 51.002.
IV.
RECORDING
The Contract with the Property Disclosure Statement attached must be recorded with county clerk on or before the 30th day after the contract is executed.  If the contract is terminated for any reason, record the instrument that terminates the contract with the county clerk.
V.
EFFECTIVE DATES
The default and cure provisions of the act take effect with regard to all purchasers who default on or after September 1, 2001, regardless of when the contract was entered into.
The pre-contract notice provisions apply only to transactions whose negotiations begin on or after September 1, 2001.
The recording requirements, the limitations on contract terms, and the purchaser's right to cancel apply only to contracts entered into on or after September 1, 2001.
The annual accounting statements and title transfer requirements apply to all contracts, regardless of when they were entered into.
The insurance provisions apply to all contracts, regardless of when they were entered into, and the notice to insurers required by section 5.078 must be delivered no later than January 1, 2002.

Hmm Under clauses II B & C it would appear you have 30 days to bring the contract up to date. Also since it would appear you have made more than 48 payments then he can't enforce the forfeiture. I would check with an attorney, but I would respond to his 4/1 deadline by citing that statute.

Often in posts regarding a Contract For Deed or Installment Sales Contract, it has been said that this instrument is nothing more than a glorified rental contract, or that in event of default it reverts to a rental situation. The citied Texas statute shows that this is not so. That instrument provides the buyer with a bundle of rights including time to cure the default and an equity protection clause (II C). It is interesting to note that the Texas law prohibits "wrapping" an underlying encumberance with a Contract For Deed. This has been used with limited success by those trying to get around the Due On Sale found in most mortgages. In my previous post I poorly chose the word "serve" the buyer with the Notice of Forfeiture. I think that a mailed notice would work.