View Full Version : Owner of land contract
Mytown
Sep 9, 2013, 05:45 PM
We are owners of a 15 year land contact. Our Buyer has a very good standing with her payments to us. 5 years in.
She now needs to borrow funds from a governmental program to get new windows on the house.
She is wants a copy of our deed.
Do we provide this to her?
Or should we follow up with governmental agency and provide what they need on house directly ?
Would this mean she is putting a lien on house?
Don't want to discourage the upgrade but don't want a lien either
AK lawyer
Sep 9, 2013, 06:33 PM
What state or country are you in?
If it's in the U.S. providing her with a copy of your deed will not by that simple fact, enable anyone to create a lien on the property. As a matter of fact, anyone can get a copy of the deed; it's a matter of public record.
But, again depending on where you are, if someone spends money to improve the house they may be able to record a "mechanic's lien". And, depending on the terms of the contract, the buyer may not have the right to replace the windows without your permission. I know if I were writing such a contract that is what I would provide. Therefore, if you allow the windows to be replace you may be in effect giving whoever provides the money for the windows the right to record a mechanic's lien.
ScottGem
Sep 9, 2013, 07:04 PM
As AK said, the deed is public record. What I would recommend is that you create an addendum to the contract that gives them permission to make the improvements but makes them solely responsible for payment and makes the improvements part of the property.
Fr_Chuck
Sep 9, 2013, 07:22 PM
If this is the US, yes, she will want a copy of the deed in THEIR name, normally, just a land contract does not make them the legal owner, they do not legally own the property till the last payment is made and the deed is transferred over.
Most programs are loans, not free money, and most are not even real government programs but only marketed that way by construction firms, using the energy tax credits to make it sound like a government program.
You need to get all the details and even be present at any discusson on this.