Taking a Contract for Deed Subject To? - Posted by David Alexander


#1

Posted by David Alexander on December 22, 1998 at 13:01:29:

The contract is recorded. The payments are current.
No underying loans or liens. No deed in escrow.

Profit approx, 10k, 500 going in. Rented with three
months left, 135 cash\month flow. People pay on time.
I will sell when lease is up.

I know some of you wouldn’t mess with it for 10k, but,
it sure could help my yearly income.

Keep the seller in the loop in what way? Should I just
L\O.

Thanks,

David Alexander


#2

Taking a Contract for Deed Subject To? - Posted by David Alexander

Posted by David Alexander on December 21, 1998 at 16:18:34:

I have a property that was sold on a Contract for deed
that I’m going to take subject to. There are currently
renters in there, with three months left on their lease.
I’ll have very little money at risk. What paperwork to
do I need since there is not a deed to put in a trust.
The seller will work with me. There is a DOS clause, that
will only allow a year lease. My plan would be to sell
this property after the current lease is up.

Should I get a management agreement of some sort till the lease is up and then Lease the property, with the option to buy. Do I just need to get a Power of Attorney?

How do you take over a Contract for Deed, subject to?

David Alexander


#3

Re: Taking a Contract for Deed Subject To? - Posted by JPiper

Posted by JPiper on December 22, 1998 at 24:27:55:

David:

Here?s some questions that I would want the answers to before I would even begin to think about doing this.

How is this land contract set up with between the original owner and the new seller? Is it recorded, or a memorandum recorded? Is there a deed held in escrow? Is there an underlying loan on the property? Is this loan current? Is there a collection account that receives payment from your seller and makes the payment on the underlying loan? Have you done a preliminary title search?

Is it really possible to do a ?subject to? assumption of a land contract? I?ll leave this to the legal experts, but I will point out that if the deal was originally set up with a warranty deed executed and held in escrow, that deed is not made out to you. So it would seem to me that your ability to do a ?subject to? assumption is somewhat tenuous. You?re going to need to keep this seller in the loop so that he will execute a simultaneous closing if necessary. Keep in mind that title issues might exist regarding the original owner AND this interim seller.

I would take a cold shower, a few deep breathes, and then contact my lawyer to put together an agreement. Better yet, I would hope there is one big pile of money waiting for you at the end of this, or it isn?t worth it.

JPiper