Can owner of my house sell it even thought I have legal binding land contract with him?

Question

I recently purchased a house trough land contract. Had all the papers down properly through a lawyer so it's a legal binding document. Owner called me yesterday stating he just the house. Can he sell it if I'm under contract to buy it from him. I just moved into the house. Started land contract 2 months ago! Please help.....

How would I go about getting it recorded? Can I just go to my attorney for it?

Answer 1

Yes, however the new owner is subject to your agreement.

Did you record your land contract? In many jurisdictions it's considered a long-term lease until you have completed your obligation and many jurisdictions require them to be recorded against the deed to be legally binding. Even where recording isn't mandatory, any lease of over 1 year should be recorded for you own protection.

Your attorney should have advised you of this fact, however if you are only 2 months in it's not too late to do so.

Answer 2

The owner has a sales contract with you in where he has granted you the equitable title in the property which is one of the components of title. The other component is legal title which he retains but grants to you in escrow based on your promise to pay him the full amount of the purchase over time. If the seller now sells the property he has committed fraud against the new buyer and has violated his contract with you. Usually one of two instruments gets recorded in land contracts, a memorandum of contract or the land contract itself. The fact that possibly a recording has not happened does not eliminate the illegal actions of one party against another since the non recording of the instruments does not negate the enforceability of the contract between the parties. Go back to the lawyer that prepared the contracts and assert your rights.