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kjglassnor · Mar 14, 2011, 04:36 PM

Selling on land contract,they will be 3 months behind the 1st, they must pay back taxxes by 3/31 or county takes it, they have never purchased home ins like contract states.We never had contract notorized either. Is it that easy to get back if I pay back taxxes to save it? Or am I just doing them a favor. The Joke is payment is only 250.00 it's a relative also. They have money just irresponsible.

Fr_Chuck · Mar 14, 2011, 06:18 PM

1. first a land contract if done properly, you still own it, you would have never transferred any deed to them.

So the taxes are suppose to still be in your name, and you will lose it ( since you still own it) if you don't pay the taxes,
You are always the one liable to keep taxes paid, they are to merely pay you back, or pay it into a escrow.

A contract does not have to be notorized, I have sold dozens, and dozens of contract for deeds, never notorised a single one.

So what does the contract say you can do, if they are in defualt, that is what you do.

Do you have to give them a written 30 day notice ? If so, give it,

1. you are to pay the taxes, that is your responsibility anyway, the contract can only tell them to pay you for pay for you, but you are the one to have to pay it, since it is still in your name.

2. Insurance, you were still to keep property insurance, just like on a rental house, since it is still in your name, you may require them to cover it, but if they don't, you take it out.

Most contract for deeds, if done properly say that if the party is in default, they are given notice to fix that default and if they don't, the contact reverts to a month to month rental, I would assume you wrote that into the contract

All contract for deeds, do not actually transfer the deed, so the deed should be still in your name anyway.

So now come back and tell me how bad you all messed this up

AK lawyer · Mar 15, 2011, 09:11 AM

Originally Posted by Fr_Chuck

... A contract does not have to be notorized, ...

This is true. But the good thing is that if it's not notarized it probably can't be recorded. And if it isn't recorded it can't cast a cloud on your title.

Fr_Chuck · Mar 15, 2011, 09:29 AM

Will disagree about the need to be notarized to be recorded, since I have filed liens in GA and Al both without the liens being notarized.

But I am almost always the seller on contracts and I never record any of mine.

kjglassnor · Mar 15, 2011, 03:41 PM

The contract says they are to pay taxxes and insurance. I know I have to pay the tax if they don't.The revert to rental agreement is not on there and I was told that is illegal in MI.I used to be a landlord and hated it. I was told it is hard to get your property back with land contract.They are in default according to the contract.Where I messed up was selling it to begin with.He said he couldn't get homestead on it w/o it being notorized. It hasn't been registered. Is he able to register it w/o me?

ScottGem · Mar 15, 2011, 03:52 PM

There is no problem getting it notarized even at this late date. It just means signing it again. All notarization does is state that the notary has inspected the identity documents of the signators and witnessed their signatures. It may be a requirement, I don't know.

Does the contract say ANYTHING about defaulting? Where did you get this contract? If it was drawn up by a professional, then it should have some provision for defaulting by either party.

kjglassnor · Mar 15, 2011, 05:00 PM

Yes it says failure to do all this the buyer is in default. I bought them from a place that used to only sell legal documents it was a professional business for many yrs. I did it myself just fill in or delete what you don't want.

ScottGem · Mar 15, 2011, 05:25 PM

But it doesn't say what penalties there are for defaulting?

Fr_Chuck · Mar 15, 2011, 05:34 PM

First to have something notarized is just to have a notary witness the signiture, they do not decide what they will or will not witness, unless it is an illegal document.

Next of course they can't get a homestead exemption, since they don't own the property. You own the property and it is taxed and treated just the same as rental property for property tax purpose

Next you really ( and I mean really) messed up not having an attorney do the forms. There has to be the penalty for default, that how can you do anythng if you don't.

In all of my contracts, there is nothing to do, you just write them a letter giving them a notice of their default and a time frame to fix it ( my contract gives them 30 days for most defaults) at the end of 30 days , I write them telling them the contact is now void because of the default.