Land contract question?
I am singing on a land contract tuesday (11/7/06). My realestate agent said I should not reqest the deed be put in escrow because the taxes will double. He said instead we should only registar it with the township and keep it in a lock box and if any thing should happen to the sellers before we re-fi we would need to persent it to the registars office to prove we have invested in the property. Is this right and will it protect us? The home is an estate owned by an older brother and sister. I am afraid if they should pass before we finace the house threw a bank could their childeren try to claim the propety if the deed is not in escrow? We are going with a land contract because they offered us a much better interest rate then the bank (4% opposed to 8.7%). Any advice would be appreciated.
Whoa! Something ain’t right here. Put a deed in escrow? Does that mean the estate holds the deed until the heirs pass? Bad idea…..once the owners pass on, you could have other ‘heirs’ come out of the woodwork and try to lay claim to the property.
You need to
a. record the deed (forget about the taxes doubling. You stand to lose a lot more if you don’t) and;
b. record the mortgage.
You need to have a lawyer write this up for you. It shouldn’t be that expensive and he can make sure your investment is protected.
If the paperwork is not done correctly now, you may not get a bank to even look at it when the time comes for you to refinance.
February 13th, 2010 at 8:34 am
I would record the ded and get the legal protection. I would take the advice of your real estate agent with a grain of salt. They are usually poorly trained in anything but traditional transfers.
References :
February 13th, 2010 at 8:39 am
Whoa! Something ain’t right here. Put a deed in escrow? Does that mean the estate holds the deed until the heirs pass? Bad idea…..once the owners pass on, you could have other ‘heirs’ come out of the woodwork and try to lay claim to the property.
You need to
a. record the deed (forget about the taxes doubling. You stand to lose a lot more if you don’t) and;
b. record the mortgage.
You need to have a lawyer write this up for you. It shouldn’t be that expensive and he can make sure your investment is protected.
If the paperwork is not done correctly now, you may not get a bank to even look at it when the time comes for you to refinance.
References :
Jim Reske
Port Charlotte, FL
http://www.flwaterhomes.com