Hi: could you tell me why a seller would have to deed the property to the buyer and then put a lien on the property? Thanks

First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

Generally in a contract for deed the seller retains title until the contract terms are met by the buyer.

What you are describing is taking a mortgage back on the property. Mortgages are not only made by banks or mortgage lenders. A seller can take back a mortgage if they want to. In such a case, the buyer signs a promissory note and the seller transfers title but takes a lien against the property covered by the note.

Thank you for your answer. Actually the seller sold the property to another company that he formed. My contract has been recorded since we signed it 4 years ago. I learned of this transaction purely by accident and demanded a refund. He said no. He said that he would write a new contract, where he is holding the mortgage and a lien is placed upon the property. I have been trying to find some case law to support my position that he has breached the contract.

Thank you so much

First its not a good idea to piggyback your question on someone elses. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.

Generally in a contract for deed the seller retains title until the contract terms are met by the buyer.

What you are describing is taking a mortgage back on the property. Mortgages are not only made by banks or mortgage lenders. A seller can take back a mortgage if they want to. In such a case, the buyer signs a promissory note and the seller transfers title but takes a lien against the property covered by the note.

If he sold the property to a corp or llc even if he was the owner of it, that is a default in your contract since in fact you had a right to purchase under your contract. ** a lot will depend on your contract wording.

What you needed to do was file a copy of the contract for deed at the courthouse with the recorder of deeds that contract then becomes part of the record

So the issue here is do you want to keep the house if so get a new contract and make it from him personally and from the company, make sure it specifies damages if he sells or transfers deed

if you want out, sue him in court for all of the payments made, most likey the court will take out the rental value of the home and allow you the value of the payments made over renta vaue on the property

Thank you again. It is vacant land, and I did demand my money back, but he insisists that he had a legal right to sell the property. The judge said that I needed case law to support my position. The contract has been recorded for over 4 years now. I recorded it, when he failed to do so.


If he sold the property to a corp or llc even if he was the owner of it, that is a default in your contract since in fact you had a right to purchase under your contract. ** alot will depend on your contract wording.

What you needed to do was file a copy of the contract for deed at the courthouse with the recorder of deeds that contract then becomes part of the record

So the issue here is do you want to keep the house if so get a new contract and make it from him personally and from the company, make sure it specifies damages if he sells or transfers deed

if you want out, sue him in court for all of the payments made, most likey the court will take out the rental value of the home and allow you the value of the payments made over renta vaue on the property

Frankly, I don't think you have a case. If he sold the property with the condition that your contract continue to be honored, then I see no breach. This type of thing happens all the time. I suspect he needed cash up front, so he sold ity to his company had them pay him cash and are now carrying your contract as an asset. There is nothing wrong in that. The only problem would be if the new owner didn't honor the contract for deed or there was wording in the contract that specifically prohibited its transfer.