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Nelope123 · Oct 30, 2009, 02:53 AM

Hello,

I do not know anything about Land Contracts, so my question is: If a Land Contract is made between myself (buyer) and the owner (seller), is the seller legally responsible (in the state of Michigan) to record/register the Land Contract? If they don't record/register it, how will that affect me? Will I be able to claim the taxes I pay on my income tax return? Will I be able to get the "1st time buyer" tax credit?
The seller told me that they do not have to record the Land Contract. Is that true?

Thank you in advance to whomever responds to my multiple question.

twinkiedooter · Oct 30, 2009, 08:04 AM

In all situations it is best that the land contract be recorded. This protects you, the buyer. The owner of the real estate is supposed to pay the property taxes as they are still the owner.

Does your land contract stipulate that you are to pay the yearly taxes on the property as well?

Was this land contract drawn up by an attorney or just the land owner and you?

I'd insist that the seller immediately record the land contract.

excon · Oct 30, 2009, 08:40 AM

Hello N:

If the seller has a mortgage, and he records the contract, the lender MAY call his loan. That may be why he doesn't want to record it...

But, moreover, I think you need to understand exactly what a land contract IS, and I don't think you do... Under a land contract, You are NOT the owner of the property. You are only contracting to BE the owner sometime in the future if you meet the obligations under the contract...

So, no. You can't deduct the interest because you're not paying interest. No, you can't get the first time buyers credit because you're not BUYING. You're only contracting to buy sometime in the future.

Hopefully, you haven't entered into this contract without FULLY understanding what your rights and obligations are.

excon

jenuine099 · Apr 10, 2011, 06:16 PM

I have an additional question... we purchased our home on May 9, 2009 -- we were not married yet so my husband was the original buyer from the seller. -- We DID In fact get the first time home buyers credit or housing stimulus. I don't know if those are two separate things or the same? We purchased a home for landcontract for$65,000. And we received the housing stimulus for $6,500. ----

Now my question is -- is it illegal to alter our land contract or how would the steps have needed to be taken to do so? The person we are buying from added my name to the land contract this February 2011. There was a woman who was a notary present and she signed and notarized as well. Here is the confusing part... my husband has been in jail since January 2011. He had NO idea my name was being added to the land contract nor did he give consent to it, and I had no way of asking him due to "no contact" stipulation set in place by the judges and courts. --- now we are facing foreclosure of the home as we cannot afford it due to only one income. --- is there any way to get out of my name being added in February this year since he had no knowledge or had not consented to it? A quick/ quit claim deed was also a part of the contract too. My husband had signed one back in may 2009, and they made a place for me to add my name to it in February this year as well. This land contract was NOT re-drawn up or re-typed up... it was simply copied and then a line was drawn for my signature to go and the date. Same with the notary.

ANY help regarding this situation would be GREATLY appreciated!