Re: Adding Buyer to deed for contract-for-deed house

Re: Adding Buyer to deed for contract-for-deed house by Judy Brown (South Carolina) on December 2, 2016 @12:58

The contract actually expired, but we never re-newed it. I know this is terrible, lol, but he improved the house when he moved in. He put in a new kitchen, etc., makes his payment every month since 2008, etc. He has been trying all year to get his own loan, but keeps saying that there are all these hold ups. Now he's saying he may get the final loan before Dec. 15, but that if it doesn't happen, he wants to have his name added to the deed so he won't have the high tax payment next year. I can feel for him since the tax payment is $2400 (but would be about $600 if he were on the deed). We have it in our contract that he is responsible for the property tax, so he knows this. Do you still think I should keep him off the deed? I will believe it when I see it if he gets that loan and we close by the 15th! According to the amortization schedule, he owes about $71000 on the house. We sold it to him for $80,000 with 7% interest.

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Re: Adding Buyer to deed for contract-for-deed house by Steph (TX) on December 5, 2016 @10:11	[ Reply ]

Before considering adding him to the deed, you should research how difficult it would be to foreclose if he defaults on the contract. With no contract in place, or an expired contract (which shouldn't be the case with a contract for deed), absolutely not. If you can foreclose with minimal hassle--I know in Oklahoma it is pretty easy, but I'm not sure in your area--I might consider it. Any time I've bought with a contract for deed, I didn't take title until after the property was fully paid. Also, consider that if you add him to the deed, he no longer has the same sense of urgency in securing his own financing, so be prepared to accept installments for the remainder of the contract. Even though a lot of the time the first answer is "call an attorney", this really is one of those times when you probably want to consult with one if you are considering adding the buyer to the title. If you inadvertently cloud your title, it will make the property much more difficult to sell later.

Re: Adding Buyer to deed for contract-for-deed house - Landlord Forum thread 349517