Home seller found a buyer who could not qualify for purchasing at the time he moved in to the house but believed he could either come up with the money needed to buy the home or qualify for a loan within one year. So, the buyer signed a promissory note for the full price of the home, less a down payment and agreed to pay $850 per month for one year and then obtain financing at that time to pay the remaining balance on the price of the home. Buyer moved in to the home and made modifications to the home even though the seller told him not to make any modifications until after the home was in the buyer’s name. At the end of one year, the buyer was unable to obtain financing for a loan and did not have the amount still owed for the purchase price. The buyer refuses to move out and is requesting that the seller pay to the buyer the cost of all the modifications buyer made to the property during the time since possession. What is the best way for the seller to obtain possession? Is a forcible detainer action appropriate even though there is no lease contract?

Yes. This is an eviction issue. In my state court costs are about $150 and doing it yourself involves 2-3 trips to the courthouse, waiting in line, etc.

Attorneys here do evictions for about $200. Definitely well spent money.

I'd hire an attorney to do the eviction. He may use the agreement you have as the "lease" - or call it a "verbal month to month occupancy"... either way, should be no problem at all.

Well it is a little cheaper here in TN, it will be 75 dollars if you do it yourself and three trips to court,

The judge should rule it a simple evictioin but if not it would go as a foreclosure, in any way, the buyer will have to move out, ( expect it to take about 90 days to 3 months depending on your area.

Holy smoke! (Pun intended Fr_Chuck :D ) 3 months! Ohio is considered more landlord friendly than tenant friendly on issues of non payment. From filing to set-out is rarely more than 40 days.

Got to give that official notice and our 10 day or less court is normally 30, ( they are that busy right not, plus often getting service done has been an issue) ( the old sheriff has to stop chewing and spitting long enough to drive over to the house

Then of course if there is a counter claim by the other party,

I would agree always use the attorney ( ours will be closer to 300 here)

I respectfully disagree with the previous answers. I am not an attorney, but it seems that the guiding instrument is a Contract For Deed (Land Contract, Agreement For Sale), and is not a landlord tenant situation. The buyer has an Equitable Interest in the property even though title remains with the seller. The seller's recovery of the property would be governed by that state's Contract for Deed statute. The seller should contact an attorney to determine if there is in fact a valid Contract for Deed. If so, the attorney will file an Affidavit of Forfeiture. The time to recover the property will depend on the % of equity that the buyer has. I think that the buyer will lose the cost of improvements he has made. Let us know what the attorney says.

Dr. D:
You are probably correct as the parties were in agreement on the terms of a contract for deed, land contract or agreement for sale type contract. The buyer simply has not completed the contract terms and is not willing to vacate. I also agree that the time during which the buyer may redeem will depend upon the proportion of the price he has paid.

Excellent points. I'll be interested to hear if this indeed is the case - and the outcome. Please keep us posted, Pete.