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tinaearls · Sep 11, 2008, 09:09 AM

Me and my husband has a contract for deed with one of our houses. The problem the people we have the contract with had a bon fire at the residence which it burned two of our trees. We ask them not to have it because the house and insurance is in our name, they had it anyway. I called lawyer and he said there is nothing me and my husband could do about it. I don't understand that isn't these grounds for eviction for putting my property and others which are only 100 feet or so in danger and does it not property damage. Isn't sit consider our liability if some one was hurt or it damaged some one else property. Please help.

rockinmommy · Sep 11, 2008, 09:37 AM

If you have a LEASE with them (like Lease to Own and you signed an actual lease) and your lease prohibits that conduct, then yes, you could evict on the grounds that they broke the lease. But if it's an actual contract for deed, then they aren't leasing the house, they're purchasing it, and I've never seen a contract (for deed) that specifically prohibits certain behaviors like a lease will.

If they're current on their payments and everything is proceeding ahead with them purchasing the house, then they didn't damage YOUR trees. They damaged THEIR trees. It's really not any concern of yours.

tinaearls · Sep 11, 2008, 09:53 AM

Originally Posted by tinaearls

Me and my husband has a contract for deed with one of our houses. The problem the people we have the contract with had a bon fire at the residence which it burned two of our trees. We ask them not to have it because the house and insurance is in our name, they had it anyway. I called lawyer and he said there is nothing me and my husband could do about it. I don't understand that isn't these grounds for eviction for putting my property and others which are only 100 feet or so in danger and does it not property damage. isn't sit consider our liability if some one was hurt or it damaged some one else property. Please help.

It is an legal contract for deed. So what rights do I have and is our insurance liable for the liability if someone gets hurt. How many times can they be late on their payment before we can take action. Are there any loop holes in a legal contract for deed.

rockinmommy · Sep 11, 2008, 10:04 AM

Originally Posted by tinaearls

it is an legal contract for deed. So what rights do i have and is our insurance liable for the liability if someone gets hurt. How many times can they be late on their payment before we can take action. Are there any loop holes in a legal contract for deed.

Basically, you have whatever rights the contract says you have. It's all based on the wording of the contract and that's assuming your contract doesn't violate any state laws or regulations on contracts for deed (there are A LOT in some states.)

As far as them paying late, that's all based on your contract, too. Whatever was in the contract at the time you signed with them. Typically, how many TIMES they're late isn't an issue. Once you accept payment and they catch up it starts all over again. But your contract should address HOW late they can be, late fees, penalties, and what has to occure before you can terminate the contract, etc.

As far as your insurance. The way I've always seen it done is an insurance policy in their name with you listed as well. If you're concerned about them keeping the insurance current, then you can collect the money and actaully pay the policy each month or year or whatever. If you carry a policy on the house, then yes, your insurance would be liable.

Is this a lengthy contract? Or does it balloon some time soon? Did an attorney draw the contract up for you? I would highly recommend getting someone very knowledgeable about real estate law in your state involved. Contracts for deed are becoming very touchy. Lots of states are cracking down hard on sellers. And, if the buyers are starting you "flake out" on you, you may as well figure out what you need to do to terminate the contract and be done with it. It just gets uglier the longer you let it go on!

tinaearls · Sep 11, 2008, 10:25 AM

Our lawyer said it is the standard contract for deed. And I don't find anything about a ballon. What do you mean figure out what you need to do to terminate the contract how can we terminate the contract. Also in the contract under clauses and covenants it say Allow seller and Sellers agents to enter the Property at reasonable time to enspect the property, does this mean we can inspect our property and if we can what good will it do if the say so of the house that is just in my name. Also I have an appointment with another lawyer will it be worth my money

ScottGem · Sep 11, 2008, 10:32 AM

Again, you need to completely familiarize yourself with the terms of the contract. That contract should spell out what rights and obligations you have as seller and they have as buyer.

Generally a contract for sale states that it reverts to a rental if the terms of the contract are not met by the buyer. But it would have to be clear and gross violation.

excon · Sep 11, 2008, 10:36 AM

Hello tina:

There isn't a STANDARD contract for deed. Oh, there's these BOILER PLATE ones you can pick up at Office Depot, but if your lawyer did THAT, you shouldn't have paid him.

You need an attorney who UNDERSTANDS LAW, and can read your agreement and tell you what YOUR rights are. The attorney you have doesn't have a clue.

Apparently, you can inspect, but I don't know why. I think you have a lease with an option. THAT would give you the right to inspect.

excon

tinaearls · Sep 11, 2008, 10:50 AM

Is there any way to termiante the contact and would it be in our besy interest to see another lawyer. I guess we wasn't well informed but we were trying to help out this couple. What is a lease with an option

ScottGem · Sep 11, 2008, 10:53 AM

Originally Posted by tinaearls

Is there any way to termiante the contact and would it be in our besy intrest to see another lawyer. I guess we wasn't well informed but we were trying to help out this couple. what is a lease with an option

Third time, you have to read the contract. We can't tell you what your rights are since we don't know what the contract says. But I tend to agree with excon, if your attorney isn't answering these questions get a new attorney.

rockinmommy · Sep 11, 2008, 01:57 PM

Do you have a copy of the contract? It will state in the contract that they are purchasing the house from you, for how much, etc. It will state what their monthly payment is and when it is due. It will say how many payments they are to make to you (for how long). That's what I was asking about a balloon. A balloon is where they make payments to you for a year, or 3 years, or 5 years, and then the entire balance of the loan is due. They would, at that time, need to refinance with someone else carrying the note and pay you off. You'd be completely out of the picture at that time. That's one of the most common ways that people default on contract for deeds. They can't get financing to pay the balloon when it comes due, so they can't follow through on the contract.

Your contract should also state what legal remedies you have when they pay late. It may or may not include a grace period. It should state if you can collect late fees, and if so, how much.

The answers to all of your questions are basically in the contract. I know the legal jargon in the contract can be confusing, but that's where all your answers are.

And yes, I think it would be worth your while to consult a different attorney. It sounds like the one you're using isn't really protecting your best interests. (Especially if all that stuff I mentioned isn't addressed in your contract.)

ScottGem · Sep 11, 2008, 04:01 PM

Comments on this post
tinaearls agrees: I think he could be nicer

I agree with you. I could be nicer. But I'm not here to be nice, I volunteer my time to answer questions. And when you ask the same question over and over it does get a little annoying.

As mommy said, sometime the legal jargon in these contracts can be imtimidating. If there is any passage you don't understand, please feel free to post it aand we'll try to clarify.