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I have a contract for deed with a buyer but they aren't paying

Whitsett, NC |

i have a contract for deed with a buyer but they aren't paying and i'm sure the contract has two errors in it per H47 Contracts for Deed. We had a rental agreement prior to this contract. How do i get this reviewed in High Point? The clerk's office had never heard of a contract for deed. It was the buyer's idea and they seem to be playing the system so they can stay in the house. They are 3 1/2 months behind on payments per the contract but i want out.

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Attorney answers 3

Posted

This sounds like a form of an installment sales contract. If the buyer is in breach, you should be able to take legal action to cancel the contract and have them evicted. You need to consult with an experienced attorney who can assist you in interpreting the written agreement and enforcing your rights.

David Puryear is an employment attorney licensed in North Carolina with 30 years' experience representing employees in disputes arising at work. He also represents employers in these matters. His general civil litigation experience includes a broad range of business and personal cases tried to jury verdicts. The answers provided here are for general public service information only and are not intended as legal advice in a specific case or the practice of law in any jurisdiction other than North Carolina. You should consult with an experienced employment attorney near you to receive legal advice about your personal situation.

Posted

I agree with the Clerk. A "contract for deed" sounds a little strange. Is there any chance it was a lease with a purchase option? If so, then you should be able to have them removed without an issue because all leases with purchase options must be recorded with the Register of Deeds within 5 days of their execution per NC law. It sounds like they never bothered to get whatever you have with them recorded, so essentially they would have a periodic tenancy (that is, month to month de facto lease) with you as their landlord. Whatever the case, this sounds like something you should contact an attorney for as whether or not you prevail will depend upon the details.

Posted

You should have this reviewed - most likely the agreement does not meet the requirements of NCGS 47G which covers lease with option to purchase. Those have to be recorded and should have been prepared by a lawyer. If you just pulled a form online then it probably won't accomplish what you intend for it to accomplish. You should have a lawyeri n your area look at this because you may have given the tenants a constructive interest in the property which might make it difficult for you to sell the home or evict them.

Asker

Posted

Doug, thanks for that feedback. You are right - but the contract does have a termination clause in it. My attorney told me to send a letter to the purchaser saying that since they have not cured the default in the time specified i am terminating the agreement per one of its general provisions. Then I sent another letter specifying the terms for their month-to-month lease and 30 day notice to vacate. They paid no money down and no damage deposit and have 0 equity to lose here. Is this sound or have I lost my mind? And thanks again.

Douglas E. Portnoy

Douglas E. Portnoy

Posted

That is what you would do if the contract is legal - however, I cannot comment on whether it is or not since the document has to be recorded and contain specific language for it to be an effective lease to own. If the contract does not meet the requirements then it does not matter what you do - you cannot enforce an illegal contract.

Asker

Posted

Thank you sir. It was not recorded. Btw, this guy has done this at least five times since 2003. I'm number five. He actually called the police when he received the termination notice but he is moving. :-) Thanks again for helping me with my sanity.

Asker

Posted

3 foreclosures (on warranty deeds recorded at the courthouse in 3 counties) plus one deed in lieu of foreclosure.

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