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bones2dogs · Mar 19, 2014, 08:05 PM

My neighbor was losing his place,so it was going to be auctioned at courthouse. Because I liked him and he had bad credit I bought the place and then sold it to him on land contract. It was in contract if he was late I could foreclose. Long story he was late on payment for 10 years every month, but he did pay. At end he never changed deed to his name. Its been 14 years and I pay taxes every year. I am tired of it and I was wondering if I can foreclose still, or what because the property is still in my name.

ScottGem · Mar 20, 2014, 05:05 AM

Let me get this straight. You resold the property to him on a land sales contract, not a mortgage. The contract was for 10 years, during which he was consistently late, but eventually did make all the payments. Is that correct?

At the end of the contract term or whenever he paid in full, the deed was never transferred to his name. What made you think that was HIS responsibility? It was YOURS as seller to deed the property over to him.

As to him paying late, the contract should have specified what could be done in that case. Usually, when the buyer defaults, the seller declares the contract in breach and it reverts to a rental lease. But it sounds like you didn't do that. No you can't foreclose. Foreclosure occurs when there is a mortgage on a property in the name of the buyer. The lender then has to foreclose to recover. But in the case of a land sales contract, the terms of the contract specify what is done in case of a breach.

As to your paying the property taxes, again, it was YOUR responsibility to deed the property to him when the contract was satisfied. So your paying the taxes may be considered a gift, I'm not sure if you can recover them.

So the main question here is did he fulfill the terms of the contract. If he did, then you should just deed the property over to him and try to recover the taxes you paid for him. If he didn't, then you need to follow the terms of the contract in regards to default.

bones2dogs · Mar 20, 2014, 08:19 AM

I wanted him to transfer deed to his name but he and wife were separated and he didn't want her to get her part I guess, I should have took the property when he was late every month,but he had a family and I liked the kids. Now it is still in my name and I want my back tax money and don't know how to get it. Really don't want the place. Its not worth anything much anyway. Just pay the taxes to keep from getting my name in newspaper for back taxes because I know he won't pay them. Thanks.

ScottGem · Mar 20, 2014, 09:58 AM

Again, its not up to him to transfer the property. You are the owner, therefore its up to you to convey a deed to him. You don't need him to do this. You have the contract to support it. Check with your local register of deeds on what the process is. Do this immediately.

As for the taxes you gifted him, if he won't reimburse you, you will have to sue him.

Finally, you really didn't answer the main question. Did he fulfill the terms of the contract? If he did, then you were required, under the contract, to transfer the property to him. Your failure to do so, could open you up for a lawsuit.

AK lawyer · Mar 20, 2014, 10:43 AM

If the contract provides that OP was to be reimbursed for advances, such as taxes, it appears that the buyer is in default of the contract. If that is the case, OP could foreclose the contract.

ScottGem · Mar 20, 2014, 11:02 AM

Originally Posted by AK lawyer

If the contract provides that OP was to be reimbursed for advances, such as taxes, it appears that the buyer is in default of the contract. If that is the case, OP could foreclose the contract.

It is my understanding that the contract was completed, but the OP failed to transfer the property upon the completion of the contract, thinking (erroneously) that this was the buyer's responsibility. Therefore, it is the OP that breached the contract by not following through on the transfer. So the fact that the OP was billed for taxes, was the OP's fault and not the buyer.

AK lawyer · Mar 20, 2014, 11:12 AM

We don't know what the contract says about who is to pay the taxes, and whether OP can pay them and add that to the amount owed.

Until OP answers that, we are whistling in the wind.

But I see nothing about the buyer demanding a deed.

ScottGem · Mar 20, 2014, 12:36 PM

Originally Posted by AK lawyer

We don't know what the contract says about who is to pay the taxes, and whether OP can pay them and add that to the amount owed.

Until OP answers that, we are whistling in the wind.

Agreed

Originally Posted by AK lawyer

But I see nothing about the buyer demanding a deed.

True, but if the buyer did complete the contract, it is highly likely that the contract said something like; Upon completion of the terms of the contract Seller will convey a deed to the buyer giving the buyer title to the property. Since the seller did not convey title once all payments were completed, the seller could be considered in breach if the buyer were to pursue it.