Ask Me Help Desk - Is my land contract a scam?

Is my land contract a scam?

Hi, I bought land in Kentucky ten years ago on land contract, the owner gave us a deed but, I noticed there was no percentage rate on there or my monthly payments in which he told me to just pay a few hundred dollars a month also he had to be paid off in 2007 but he extended that until 2014 because my husband did some construction work for him. I did receive from him a maturity date which is 2014 to be paid off. Well, being young and not knowing much on real estate that's what I have done for ten years, I got behind this month, not even being 30 days behind, his partner who happens to be a lawyer sends me a notice that I owe the same amount and a little more as when I started ten years ago. We are talking about thirty thousand plus. I am confused and worried. I was thinking I am almost paid off but, it's like I never even paid a dime. What's going on ? Am I being scammed or is this the way it goes? I asked him repeatedly through the years what was my % rate and he always told me 8%. Does this sound right? Thanks:also I want to add that there were people on our back land and state they own it from so far back, I keep asking the land owner to walk it with us and let us know but he keeps putting it off. So now I don't think I own as much as the deed states. Help?

OK, First you leave out some details. The contract for was what term? Does the contract specify you will pay X for x months/years and at the end of that time you will own the property? You need to read the contract carefully and understand everything it says. Without knowing what it says, we can't tell if it's a scam or not.

Hello jen:

I have the feeling that you never even saw a contract and you just believed that you were going to be treated fairly.

I would demand a copy of the contract, and then I'd take it to a real estate attorney.

excon

Quote:

Originally Posted by ScottGem

OK, First you leave out some details. The contract for was what term? Does the contract specify you will pay X for x months/years and at the end of that time you will own the property? You need to read the contract carefully and understand everything it says. Without knowing what it says, we can't tell if its a scam or not.

Thanks for getting back, it states in contract that it is supposed to be paid off in 2007 but, my husband did const. work for him and he extended until 2014 in which he gave me a maturity date. No it doesn't state how much a month or anything. I have read over it and cannot make sense. I have left a message for a lawyer to call me back, but I am afraid.

Quote:

Originally Posted by excon

Hello jen:

I have the feeling that you never even saw a contract and you just believed that you were gonna be treated fairly.

I would demand a copy of the contract, and then I'd take it to a real estate attorney.

excon

I have got a contract but it doesn't state a lot of things and I went to courthouse to get all of papers on it but it does not show percentage rate or monthly payments or anything. Thanks for getting back to me.

You agreed to a contract that says the contract has to be paid by 2007 but doesn't list any payment amount or cost of purchase? Shame on you! I would be afraid too. Or maybe, its like excon says that the copy you have itsn't the real contract and the seller has the real contract.

On the other hand, If what you have is the real contract, then the seller doesn't have much proof on his side either. Frankly I haven't a clue how this would work out.

The first thing I would do is document all the payments you have made to him.

You may not have a legal contract, There are requirements it has to state the price to be paid, and normally payments to be made and for how long.

It does not in many states have to say an interest rate, since it is merely number of payments to pay off a set amount, in other states there can be an interest rate shown.

And actually in most states you don't get a deed, you merely have your contract to be paid and you don't get the deed.

It sounds like you need to get a full accounting of the balance, all payments made, and so on.

Quote:

Originally Posted by jennlvan

thanks for getting back, it states in contract that it is supposed to be paid off in 2007 but, my husband did const. work for him and he extended til 2014 in which he gave me a maturity date. No it doesn't state how much a month or anything. I have read over it and cannot make sense. I have left a message for a lawyer to call me back, but I am afraid.

Without specific terms and a meeting of the minds I would say there is no enforceable contract.

You need to see an Attorney - better late than never.