what happens when the seller sells the note on a land contract?

Answer 1

He,now, has money and no note.

Answer 2

A land contract is a purchase agreement to buy a piece of real estate wherein the seller accepts a promissory note from the buyer in lieu of the purchase price. The terms of the accompanying contract and mortgage, govern the schedule of payments and other details of the direct arrangement where no bank or finance company is involved. The seller cannot legally sell the property to both you and another buyer. You ought to have your contract recorded at the register of deeds' office in the county or city where the property is located, in order to protect your interest in that property just in case the seller does try something fraudulent like this. But selling the note? I have never heard of someone doing this. If they did, and they recorded the sale agreement or similar document between themselves and Party Number Three, the register of deeds should have examined such a document very carefully to determine, in the language of it, now just who owns that property while the buyer is still making the payments according to the land contract. It sounds like a question for a good real estate attorney! I have bought property three times using a land contract, and never been confronted with the possibility you are describing.

Answer 3

For the person that occupies the land the only difference would be you are making your payments to someone else...in most cases