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    natrevino's Avatar
    natrevino Posts: 5, Reputation: 1
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    #1

    Aug 28, 2008, 07:09 PM
    Buyer isn't making payments.
    My husband and I are selling our home through a Contract for Deed. Buyer is now 4 months behind on payments. We gave Buyer a 60-day Notice of default. Buyer's lawyer is now claiming that we are in Violation of Section 305 of the Texas Finance Code because in the contract it states we are charging Buyer twice the legal rate of interest. Buyer wants the property free and clear of any liens. Buyer owes $25,800. On the disclosure page the total amount to be paid does not reflect the interest to be twice the legal rate. Therefore showing we aren't in Violation. Is Buyer liable for making payments with this accuation and his he entitled to the property? :confused:
    jdlgreenthumb's Avatar
    jdlgreenthumb Posts: 2, Reputation: 1
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    #2

    Aug 28, 2008, 07:15 PM
    He is not entitled to that property and you need to seek legal advice fast before it gets any deeper. Are you charging twice the legal rate of interest? That can be a problem because it may be a violation.
    natrevino's Avatar
    natrevino Posts: 5, Reputation: 1
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    #3

    Aug 28, 2008, 07:35 PM
    Quote Originally Posted by jdlgreenthumb
    He is not entitled to that property and you need to seek legal advice fast before it gets any deeper. Are you charging twice the legal rate of interest? That can be a problem because it may be a violation.

    In the contract it is written in error with interest at 25% per annum. But on the Seller's disclosure page it is written total amount of principal and interest to be paid under the contract doesn't reflect twice the legal rate. Is that binding as proof that we aren't charging twice the legal rate? What can we do about him not making payments?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Aug 28, 2008, 08:48 PM
    No he will not get the property free and clear, but welcome to the wonderful world of contracgts for deed. Can I guess you did not have an attorney write it up.

    How much interest is being charged ?

    But you hire an attorney and they laugh at this other attorney and you go to court. They are using this to get to leave free for months at your expense.
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
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    #5

    Aug 29, 2008, 07:13 AM
    GET THE BEST REAL ESTATE ATTORNEY YOU CAN, AND FAST!!!!!

    Texas passed some very strict, very restrictive laws about contracts for deed a couple of years ago. These laws make contracts for deed all but illegal. You can still do them but have to adhere to a long, long list of very specific requirements and rules. There are extremely stiff penalties for violating these rules, and if the seller can pay up on the penalties immediately THE BUYER CAN, IN FACT BE AWARDED THE HOUSE FREE AND CLEAR!!

    Most of the investors I know won't even do contract for deeds anymore because even with the assistance of their attorney they don't feel they can take the risk of not dotting an I or crossing a t and losing the property. I'm DEAD serious about this.

    The buyers obviously got turned on to their rights by someone, or on the internet, or somehow. If they follow through (don't get me wrong they'll have to jump through some hoops and get an attorney, etc.) and you're not properly covered and represented by someone who knows what they are doing you very well could wind up signing the property over to them!

    Where are you located in TX? I may be able to help you find an attorney if you need help.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Aug 29, 2008, 07:34 AM
    Listen to RockinMommy and get an attorney NOW!!
    natrevino's Avatar
    natrevino Posts: 5, Reputation: 1
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    #7

    Aug 29, 2008, 02:39 PM
    Quote Originally Posted by rockinmommy
    GET THE BEST REAL ESTATE ATTORNEY YOU CAN, AND FAST!!!!!

    Texas passed some very strict, very restrictive laws about contracts for deed a couple of years ago. These laws make contracts for deed all but illegal. You can still do them but have to adhere to a long, long list of very specific requirements and rules. There are extremely stiff penalties for violating these rules, and if the seller can pay up on the penalties immediately THE BUYER CAN, IN FACT BE AWARDED THE HOUSE FREE AND CLEAR!!

    Most of the investors I know won't even do contract for deeds anymore because even with the assistance of their attorney they don't feel they can take the risk of not dotting an i or crossing a t and losing the property. I'm DEAD serious about this.

    The buyers obviously got turned on to their rights by someone, or on the internet, or somehow. If they follow through (don't get me wrong they'll have to jump through some hoops and get an attorney, etc.) and you're not properly covered and represented by someone who knows what they are doing you very well could wind up signing the property over to them!!

    Where are you located in TX? I may be able to help you find an attorney if you need help.


    We do live in Fort worth, Texas. Yes please we need all the help we can get. Please send me a listing of attorneys you know here.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #8

    Aug 29, 2008, 05:11 PM
    Quote Originally Posted by natrevino
    We do live in Fort worth, texas. Yes please we need all the help we can get. Please send me a listing of attorneys you know here.

    The Board doesn't work this way - you would have to find your own legal counsel. Not a message board.
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