Make sure you understand the contract of the deed if you are a landowner. Not doing so can be a costly mistake! Q: As a landowner, how can I drive out someone who has defaulted on payments? A: This is where our lawyers see the biggest mistake. Simply put, you can`t chase the buyer out under a land contract. The Kentucky Supreme Court has ruled that a land contract default must be treated as a default on a mortgage debt. In other words, the owner must file a foreclosure action and the property will be auctioned off in court. This is a long and expensive process. Often, our lawyers find that landowners who sell by land contract are shocked when they realize they cannot evict and have to auction off by force. The seller and buyer must be clearly identified. The physical address of the property and a legal description of its boundaries and boundaries should be included. The total sale price, the deposit and the monthly payments must be delimited as well as the duration of the contract. If a lump sum payment is to be made at the end of the term, this amount must also be included in the contractual document.

Under Kentucky law, contracts for the sale of real estate generally must be in writing before they can be executed. KRS 371.010 A lawyer may be able to help you in your specific situation. Our Kentucky lawyers help businesses and individuals meet their legal needs. Some of the major industries representing Kentucky`s economy include agriculture, construction, oil and gas. Q: What is a mortgage sale? A: A mortgage sale is the most common type of land sale where the buyer borrows money from a lender to pay the seller for the property at a time. This allows them to receive the deed at the time of sale, followed by the buyer who repays the loan over several years. A mortgage is taken out by the lender to secure payment of the loan. When entering into a contract for an act with a buyer, remember that they are not considered a «tenant» who can simply be evicted in case they stop payments. The law states that a person who buys a property on a contractual basis acquires a legal interest in the property, which can only be terminated through the foreclosure process. An eviction proceeding is a quick and summary process, while a seizure is an expensive civil lawsuit that is filed in the District Court and can last from 6 months to a year and results in the sale of the property in a judicial sale. It appears that I was named on an affidavit of inheritance. Does this mean that I would sign my inheritance? My father owned the land before they married when he was married to my mother.

My father lived in Tennessee. I live in Lexington Ky. The registrar requests a return address to (KRS 382.240)The document must: be signed and confirmed (notarized) by both parties. (Since this document is analogous to a mortgage and a transfer, it must be signed by both parties.) (Contract Law and KRS 382.130 and BA 95-12) The real estate transfer tax is then levied on the deed. They are not collected on the contract. The tax on the legal process is levied because the land contract is analogous to a mortgage and a transfer has taken place. OAG 95-12 and Sebastin v. Floyd «A land contract in Kentucky legally establishes the terms of a contract to purchase vacant land between two parties. The conditions set out in the contract range from financial provisions, such as the agreed purchase price and any monetary eventuality, to the legal descriptors of the country as they appear on the deed.

By mutual agreement, the seller and the buyer must give their written consent by signing the contract and thus bind the contract. The two parties then exchange the appropriate funds and transfer title to the property on the scheduled closing date. If the contract was enforceable against the deceased, it is enforceable against his estate. You`ll need a probate lawyer to help you deal with this. The estate of the deceased also requires a probate lawyer. Things will progress much better and more easily if all parties have legal problems. Read More » However, for some potential buyers, getting financing for the purchase of real estate is not an option. Some potential buyers may have bad credit (or no credit) and/or no one to co-sign a loan for them. In these cases, there may be a seller who is willing to finance the property for the buyer. This can be done in many ways, but a common way to do it is a contract for one deed (also known as a land sale contract).

By requiring enforcement proceedings, the court sought to recognize the equity that a tenant had accumulated under the land contract. As with a seizure brought by a bank or financial company, the goal is to remove the defaulting tenant/buyer from the premises and sell the property to another party. All products that exceed the unpaid debts to the seller are then transferred to the former tenant/buyer. Declaration of Disclosure of Vacant Land – The Kentucky Real Estate Commission recommends using this disclosure form when selling vacant land. However, a seller has the option to include or omit the statement in negotiations at its own discretion. I joined Enterprise Law Group, LLP as a partner in March 2020. My practice covered a wide range of legal issues, from commercial real estate, finance and international business transactions to litigation, including commercial litigation, personal injury and medical malpractice. I am proficient in Spanish and am a graduate of the University of Kentucky School of Law, the Patterson School of Diplomacy and International Commerce, and the University of Southern California. Before my legal career, I was looking for a wide range of professional experiences. After graduating from university, I orchestrated my own volunteer work in southern Peru with a small non-profit organization. Later, I gained valuable work experience campaigning for the U.S. Senate and then joined the public policy team at Greater Louisville, Inc., the subsidiary of the Louisville Chamber of Commerce.

Prior to law school, I took a month-long trip with the Northern Outdoor Leadership School in Alaska, which gave me a new appreciation for sustainability. In Sebastian v. Floyd, the Kentucky Supreme Court has stated that a contract for a deed is actually no different from a situation where a borrower signs a promissory note, receives a deed for property and in turn provides the lender with a mortgage on the property. The only difference in a contract for a deed is that instead of the beneficial/registered ownership of a property, the borrower has a reasonable interest in the property. The result of this attitude is that the remedy is judicial enforcement, rather than being able to evict a borrower on the basis of a contract for an act. This can pose a number of problems (both legal and practical) for someone who has served as a seller/lender under a contract for the deed. If you`re a landowner, it`s important to understand the difference between a deed contract and a regular mortgage sale, especially in the state of Kentucky. Too often, our office sees clients who misunderstand a contract for a deed, which can cost landowners a lot of money. The lawyers for Skeeters, Bennett, Wilson & Pike don`t want you to be.

Q: What is the main disadvantage of signing a land contract? A: Problems arise mainly when the buyer is not able to track their payments. Q: What is a contract for an act? A: Unlike a mortgage sale, a deed or land contract does not require the buyer to pay everything at once; On the contrary, he or she pays on the property. This is the classic «Rent to Own» scenario. Once all payments have been made, the buyer owns the property. How can a seller protect himself in a situation where he will finance the property for the buyer? There are several ways to achieve this goal.