I have a promissory note to purchase property. However, it simply states I have a debt of a certain amount that I must pay by monthly “mortgage” installment for 10 yrs. However, I have no claim to this property. It is not a warranty deed and says the debt will be forgiven when paid off at the end of ten yrs. It does not outwardly say I will receive deed for property. But it says the property is collateral for the debt, but I don’t own the property to put up as collateral. Neither parties were aware of this oversight and there was no malicious intent. What are my rights? What are the seller’s rights? Can they legally repo the property even though I thought I was buying it? What can I legally do? What can the seller legally do?
Was this written on a paper napkin?
Is it a land contract? if it is then you get the deed when the note is fulfilled.
You should all get together and have this thing restructured by an attorney.
herbster
The contract is titled Real Estate Lien Note. When the seller and I became aware of this, the seller now wants to quitclaim 2 acres over to my name ( what i’ve actually paid in principle over the years) and reabsorb the rest. Can they legally do that? The note states that I’m putting up the property as collateral for the debt owed, but it is vague on whether or not it states I have rights to the deed after the debt is paid off. It doesn’t seem I have any right to put up the property as collateral in the first place. Neither one of us wants to get a lawyer involved if at all possible. My main question is, can the seller do that? Take all or part of the property I thought I was purchasing.
Okay so this is the promissory note, what about the actual contract for sale? What other docs do you have governing this transaction? You obviously have a contractual agreement with the seller that generally cannot be changed by either party without the other’s agreement.
Why don’t you want an attorney involved? Who is protecting your interest, especially since you don’t completely understand the complete structure of the proposed deal.
A quit claim deed might be a red flag that something could be awry.
Get an attorney to review the deal for you and advise you accordingly.
They said they would quit claim or warranty deed what I’ve paid in principle so I can refinance it with my mobile home that is currently a chattle loan at 11%. The rest they want to renegotiate on. I owe them money that pertains to the property…down payment…well…and down payment for the mobile home. They want to add that to the purchase price and finance it for me. Granted, I have not made a good faith effort to pay them back, and they are pretty much calling the debt due…start paying or get sued, or take the remaining property. The reason I don’t want an attorney is b/c I can’t afford it. The seller is looking out for their interests, but I know they are sort of looking out for mine as well…fortunately and unfortunately the seller is family.
I’m guessing this is some kind of family deal and your family is upset you aren’t paying. Since it’s family and they sound reasonable, you should be able to work out some kind of win-win for everyone.