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byrdc8 · Jan 10, 2009, 05:01 PM

I am in the midst of buying a home. The initial contract was signed, inspection done, negotions agreed upon. Loan application being done as we speak (pre-approval done) My realtor recently called and told me I would need to sign the initial contract again because the "seller" is actually in a land contract. Meaning that there is another person involved that actually still owns the home. Supposedley, my realtor told me that this does not affect the negotion process or anything due to an agreement the owner and seller made. The owner gave the seller the right to ask for what she needed to get out of the land contract and so forth. Since I am clueless about real estate and am a first time home buyer I am hesitant. I have been doing a bunch of research and plan on speaking with the bank lawyer on Monday, however I know that although the lawyer may help, he is still the bank lawyer and has the bank in the best interest and not myself. I really don't have the money for my own lawyer since I'm trying to save for closing costs. So, my question(s) is How does this " land contract" affect me? Is there anything I need to be looking out for or that will jeapordize this deal?
To complicate things more, I am friends with my realtor, however the person selling the house is also a realtor and sister to my realtor. Talk about possible conflict of interest. I think I can trust my realtor, but I just want to cover my investment.
I know that the title check will let me know of any leins on the property, but I'm wondering if the owner and sellers land contract will and can affect this deal. Any advice or forthought is welcome. Thanks!

Fr_Chuck · Jan 10, 2009, 05:34 PM

Land contract does not effect you at all. You are buying from the people with the contract, so at closing, the actual owners ( people who are on deed) will be there, the people who have the land contract will be there and you will be there.

The actual owners will sign over the deed to you, and the people with the land contract will sign over their rights.

As long as you have your own real estate attorney review this just as you would any sell.
I have done dozens like this.

excon · Jan 11, 2009, 06:20 AM

Hello b:

Please note, the Padre said you'd be safe with YOUR OWN attorney...

I know you're trying to save money, but scrimping on an attorney ISN'T the way to do that.

excon

ScottGem · Jan 11, 2009, 07:40 AM

I'm going to have to disagree with Chuck here. The fact that the sellers are working from a contract for deed does affect you. You need to make certain, that you are buying the property and not just the contract. If you are buying the property, then what Chuick said holds, both the seller and the titleholder will probably appear at the closing and you pay the seller, they pay the titleholder and the deed gets signed over to you.

However, you could just be buying their rights under the contract. In which case, the titleholder retains title and you will need to fulfill the terms of the contract before you get the deed.

Please take what excon said to heart. This is a complex situation and without an attorney representing YOUR interests, you could be stuck.