In this land contract, buyer wants to tear down existing house and sell property...The seller has an equity loan against this property and wants toknow if the buyer has the right to do this.. Thecontract is for 5 years. they have only paid on the property for 1 year.. Seller stillholds deed and title to the property...Help!
2006-08-01 11:03:28 · 5 answers · asked by mert w 1 in Business & Finance ➔ Renting & Real Estate
In a land contract, the buyer typically has the right to buy the house not tear it down. The buyer usually will get a new loan to perform on the land contract before the agreement ends. Otherwise, the buyer loses the right to buy the house. The buyer may have the right to make quality improvements to the property and this would not include tearing down the home. The equity loan is secured by the property. If the buyer tears down the home, the equity loan is no longer secured and the borrower is still liable for the debt. If the buyer tears down the home without your permission, then the hazzard insurance policy may cover it. I reccomend you tell the buyer, "You can tear down the home after you perform on the land contract and get a new loan." Otherwise, tell the buyer "You have to right to teardown the home before this."
2006-08-01 11:26:12 · answer #1 · answered by Superman P 2 · 0⤊ 0⤋
In a land contract the buyer doesn't have possession of the deed until they have fully paid for or financed the property. So, the buyer is more of a tenant than an actual buyer in this sense. Therefore, he doesn't have the right to sell it or destroy the improvements that increases its value. I suggest you call a lawyer (and maybe even the cops) if the buyer/ tenant proceeds.
2006-08-01 11:42:18 · answer #2 · answered by linkus86 7 · 0⤊ 0⤋
Hell no! The buyer doesn't have title to the property and is a tenant until the terms of the land contract sale have been completed.
That said, a buyer who signs a land contract on an encumbered property is an idiot.
2006-08-01 12:03:21 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The land contract is usually a 2 way contract until it expires. Unless they re-write the contract, I could not see how this would be allowable.
2006-08-01 11:07:43 · answer #4 · answered by jake_deyo 4 · 0⤊ 0⤋
False
2016-03-27 13:23:44 · answer #5 · answered by Bonna 4 · 0⤊ 0⤋