We bought a house in Ohio from a Real Estate agent who owned the property. He was selling it on land contract. He owns several propertys and makes this offer to anyone. We did not have the property inspected because we just did not have time. We did look at it several times,each time we looked at it there were workers fixing things. Painting and repair on the kitchen ceiling from what they said was leaking from the bathtub. The carpet was discusting and smelly. We just figured we would take up the carpet if we took it. The house looked pretty stable. We took it. OH MY what did we do? We moved in and started cleaning and riping up carpet. The owner told us that there were hard wood floors under the carpet. Was there ever. The floor was rotted it was hard wood all right. Pieced together pieces of plywood. We died. Not only was the floor rotten we found out why. The first big storm we had the roof leaked so bad that when we got up the next morning and the dinning room ceiling was on the floor. He did come and fix the ceiling and made a patch on the roof. IT didn't work the next big rain we had filled the kitchen ceiling light with water. We had someone to come and fix it, that didn't fix it either. Now we have been waiting for owner to make it right for us, but after 7months he is not going to fix anything. What I need to know is do we have any legal recourse with this guy. There is more to this story but!! :confused:

As noted, I guess you needed to take time to have a home inspection,

But on any and all of my contract for deeds, the buyer is responsible for all repairs and upkeeps, and when I buy a house on a contract I am responsible for the repairs I do to it. I have had to replace roofs, replace all of the plumbing, put in new heating units and more. But of course I do an inspection of every home personally wth a inspector before I buy anything, it takes about 3 hours to get an inspection done and they can give you a verbal on the spot.

So I would say he fixed more than I would have if I had sold you this home.

It sounds like you need a new roof, and new flooring, and if you can do it yourself is not all that costly. If you don't know how to do it all, big bucks

Hello alice:

Or, if you haven't put too much into it, you can let him have it back. Of course, the house going to cost you a ton more, and you know it. You don't own it yet. You don't have a deed. If you give it back, you'll only be considered a tenant who moved. Your credit won't be tarnished either.

If it were me, I'd give it back in a heartbeat.

excon

Real Estate Investors "sell" their properties either on land contract or lease option. I think it is important to make sure which one this really is. Whose name is the house in? Is it still in his name or is it in your name? If it is a lease option, the house is still in the investor's name until you obtain financing and purchase the home. In that case, you may be able to not exercise your lease option and walk away. Until the option is exercised, he would be responsible for making repairs (unless you have made other arrangements within the option)If this is an actual land contract, the house is already in your name and you are the owner. If it is a land contract, is he financing (acting as the bank) for this house? Does the agreement state that he is responsible for repairs?

Hello again, alice:

I don't believe you are the legal owner, and I believe you can walk away. However, the devil is in the details. YOUR contract may be different.

What follows is everything I know about a land contract.

A land contract is a contract between the buyer and a private seller of a property, wherein the seller holds the title or deed to the property until all agreed upon payments have been made in full. This property may be improved or unimproved, vacant, or a home or a commercial building. With a land contract, a down payment is usually made, then equal monthly installments are paid until the property is paid for or until a balloon payment is required. A balloon payment is a lump sum of money that is due at a specified time.

A land contract can be compared to renting or leasing with the option to buy. Such options are different in that the agreement is USUALLY FILED and is a legal arrangement, giving the renter or lessee the option to buy the property at a prearranged time during the loan. Rent payments then become equity in the property.

While this type of agreement is usually recorded, a land contract MAY NOT BE, making the legal recourse of the buyer tenuous should the agreement be flawed in some way. For example, if the seller still owes a mortgage on the property, the buyer assumes that the seller will use his monthly payments to pay the mortgage as well as any taxes or other liens, keeping the title free of encumbrances. If this occurs, the buyer owns the property free and clear at the end of the contract. If the seller does not keep up with payments owed, there could be trouble for the buyer.

While a land contract can seem very attractive to a buyer that is unable to secure a conventional loan, there are pitfalls to such an arrangement. Many sellers don't file or record the proper papers, in some cases because their lender would not agree to a sublet agreement or land contract. The lender may have stipulated that the borrower must have possession of the property. Making an end run around this provision by refusing to file the land contract can cause problems if the lender becomes aware of the situation.

The lender can demand payment in full of the loan, forcing you to procure a loan to pay off the mortgage if you don't want to give up the property. If you can't come up with the money, you'll lose everything you have invested in the property and be forced to move out. This can be especially painful if you have also spent money and energy improving the property.

Even if there is no mortgage on the property, there can be back taxes or other liens that the seller owes, which could cause you to lose the property or force you to come up with extra money. If you decide to take part in a land contract, make sure the title to the property is clear. Make sure the seller intends to file the proper papers to insure that you have some protection.

A land contract can be beneficial to buyer and seller alike as long as everything is above board.

excon

If you do have a land contract, the seller/RE agent still has title and most probably any repair concerns are yours.

I have often stated on previous posts that a Land Contract, or Contract For Deed is NOT a lease option. You are the owner of the property by virtue of your Equitable Interest, even though legal title remains in the seller's name until your debt to him is satisfied. The problem here is whether the seller KNOWINGLY concealed material defect to the property. Some states have a Property Disclosure form that the seller fills out, others do not. Since your seller is an investor who never lived in the home, and probably sold the property AS IS without any warranties expressed or implied, you would have an uphill battle proving in court that me KNEW of these material defect and hid them from you. I would suggest discussing this with a GOOD Real Estate Attorney, who could advise you on what your realistic options might be. Good Luck

How do you tell which you have? Mine is titled Installment Agreement for Warranty Deed Nothing is in my name, deed loan, taxes etc. So how do I tell what is what?

Call it Installment Agreement for Warranty Deed, Contract For Deed, Land Contract, or whatever; they are the same. The deed, taxes, underlying mortgage ALL remain in the name of the "owner of record". You will become the owner of record by virtue of the Warranty Deed when your debt is satisfied. I hope this answers your question.

How do you know whether seller has filed paperwork protecting buyers rights
Or recorded
I have contract for deed and I pay the property taxes. Does that mean I am filed and recorded?
Also I make one lump payment to the seller which includes the taxes
This is in the contract drawn by attys. They said that is how I'm on the court records

Check the county records yourself to make sure that the Contract For Deed is recorded. Check with the county tax assessor to make sure that the taxes on the property are current. The seller does not care if your interest in the property is protected.

Thank you
Dr D
Also if the contract calls for me to be responsible for repairs
Why would I be refrenced as "tenet"?

I saw one of your posts where you mentioned "equitable Title" rights of the buyer
Could you expound on that?

The term tenant is a misnomer, becaue there is no landlord tenant relationship. A better term would be purchasor or buyer. Equitable interest means that you have all the rights and responsibilities of an owner, even though you don't hold legal title to the property. You have the right to refinance the debt owed to the seller, and in the process acquire legal title. You also have the right to sell the property, provided that the debt is satisfied.

There is a comprehensive discussion of this topic on the post: "Selling home...considering accepting land contract". I have not yet learned how to provide links to other posts... sorry.

Alice,
More details would be necessary for a good answer. Was the house purchased "AS IS". Was the seller aware of problems and did not disclose these items. With a Land Contract you do have an equitable interest in the property. It is about what is in your contract. You are an equitable owner of this property and should have interest deductions, depreciation, etc.. The IRS considers this an installment sale and you have the tax deductions on this property. I'm in Virginia and we use Contract for Deeds vs. Land Contracts. When I use Contract for Deeds my attorney holds warranty deed from me to buyer and a release from buyer. If the obligations of the contract are met the deed is recorded in buyers name. If the contract is breached or goes into default the release is enforced. I would need more information to give you an accurate opinion on your particlar situation. There are many variables in land contracts and depending on what's in your contract you may have legal recourse. Was the contract recorded?