Posted by Michael Morrongiello on February 09, 2000 at 15:11:48:
I advocate treating a buyer honorably and doing the right thing. IF they pay you on an unrecorded land contract you make SURE you make the payments on the debt you have taken title “subject to”. Doing business ethically keeps everyone HAPPY.
However be aware that IF yoiu choose to record a memorandum of interest or agreement that shows the world that this buyer now has an interest in the property you may find some flak from the lender over the due on sale clause IF they find out. There is a chance (may be great may be just a little chance) that that lender might investigate further the true title holder of the property and determine that a violation of the DOS clause has taken place.
In some instances like this it may make more sense to give them agreements, copies, etc. BUT to NOT record anything in the public records that could tirgger that DOS.