I had a contract for deed with my tenants that ended at the end of July. The tenants said that they would be able to secure a loan by mid August but this has not happened. The tenant has not paid August payment and has no intention of paying. Do the tenants have any legal rights to stay in my property?

Just as long as it takes you to foreclose on them...

You're calling them tenants. Did they have an option to purchase? Or were you carrying the note? They are either buyers or tenants.

Did you have an attorney draw up the contract? If so, or if not, contact an attorney for the fastest termination procedure.

I am carrying the note. They tried to secure a loan but were unable to. I spoke with someone in the Attorney General's office here in MN and was advised to file for eviction due to non-payment of rent. I was told that I could file today but I would have to wait for a judgement.

What does the contract say? In most contracts for sale, the buyer either makes monthly payments for the term of the contract at which time ownership is transferred or the buyer is required to make a baloon payment after a period. Usually they have to obtain their own financing for this. In either case, if they do not adhere to the terms of the contract, it reverts back to a rental lease and they would have to be evicted.

What bothers me is your statement that you are carrying the note. A Promissory note usually means a mortgage, in which case its not a contract for sale and you would need to foreclose.

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Originally Posted by kibwana1969

I had a contract for deed with my tenants that ended at the end of July. The tenants said that they would be able to secure a loan by mid August but this has not happened. The tenant has not paid August payment and has no intention of paying. Do the tenants have any legal rights to stay in my property?

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I collect payment monthly. The contract that we had ended in July. At that time they were supposed to purchase the home. They were not able to secure a loan and now they are stating that they can't afford the home and they have not paid for the month of August.

Thanks,

Again, what does the contract SAY happens if they can't get financing? This should have all been written into the contract.

Generally, such contracts state that the property reverts to a tenancy and all monies padi toward the purchase are forfeit.

If yopur contract says that, then yes you can start eviction proceedings.

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Originally Posted by kibwana1969

I had a contract for deed with my tenants that ended at the end of July. The tenants said that they would be able to secure a loan by mid August but this has not happened. The tenant has not paid August payment and has no intention of paying. Do the tenants have any legal rights to stay in my property?

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That's exactly what the contract states. Thanks for the info.