[Landhelpneeded]

I started a land contact in 2006 for 10 years however I want to pay it off now, can I write a check for the balance due and demand the deed, even though the couple I bought it from is now going through a divorce?

[Jswee]

Originally Posted by Landhelpneeded

I started a land contact in 2006 for 10 years however I want to pay it off now, can I write a check for the balance due and demand the deed, even though the couple I bought it from is now going through a divorce?

Talk to an attorney, it all depends on how the land contract was written but usually you should be able to pay it off early with no penalty. By the way, in addition to making sure you get the deed, you need to make sure that the transfer tax is paid to the State and County. It can amount to thousands of dollars and should be paid by the Seller, you want to make sure this happens before it becomes a sticking point in a divorce.

[jackmichigan]

Originally Posted by Landhelpneeded

I started a land contact in 2006 for 10 years however I want to pay it off now, can I write a check for the balance due and demand the deed, even though the couple I bought it from is now going through a divorce?

Unless your contract has a clause preventing early payment, you should be able to pay it off at any time. But DON'T just send them a check and hope to receive a Deed. Set up a time for closing so that you can get the Deed in exchange for the payment.

If the property is in Michigan, the Seller will owe transfer taxes (unless the contract stipulates otherwise), so make sure any payment is adjusted by that amount--and then you pay them to make sure they get paid when the Deed is recorded. (In some other states a Buyer may be liable for the transfer taxes.)

Make sure the title is clear and that no mortgages or liens have been placed against the property. If title insurance isn't addressed in your contract, you may still want to get a title insurance policy.

When entering into a Land Contract, some people get the Seller to execute a Deed at that time and then place the Deed into escrow--to be delivered upon full payment of the contract. This avoids any hassles or problems with getting a Deed signed at the time of payoff--such as can occur with a divorce. Hopefully, you won't have a problem.

When in doubt, consulting a good real estate attorney is always advisable.

[dragon_fly_12]

Especially if they are going through a divorce, you need to ensure there are no liens on the property or how the property is being dealt with as an asset in the divorce. Have you spoken with the sellers to determine what the situation is and how the property ties into the divorce proceedings?

[Wheelerk]

If the buyer wants to get out of a land contract, had put 5000 down and roughly 6000 worth of work into the place, does the buyer have the right to ask for any money back? 6000 was cosmetic not issue repair...

[jackmichigan]

Originally Posted by Wheelerk

If the buyer wants to get out of a land contract, had put 5000 down and roughly 6000 worth of work into the place, does the buyer have the right to ask for any money back? 6000 was cosmetic not issue repair...

No. A Buyer can ask, but there should be no expectation to receive anything. That is true even if capital improvements were made to the house.

With a Land Contract, the purchaser agreed to pay off the Land Contract in order to get the deed to the property. Depending upon the terms of the contract, a Buyer may be able to assign their interest. Otherwise they are stuck with the contract unless they can find a Buyer willing and able to pay for the house so that the Land Contract can be paid off in full (assuming that prepayment is not an issue, which it usually isn't).