Q: a buyer is defaulting on land contract~lien is being put against buyer/property by 3rd party~will that transfer to me?
i own property free and clear so am carrying contract...creditors are going after buyer and wanting to put lien on property...when i repossess will that lien be transferred to me and i'll be responsible for paying when i resell....???
A:
It really depends on the terms of your land sales contract and whether the contract and other related real estate documents were properly recorded to reflect what your interest is in the land. You are going to need to take your documents to an attorney and get a legal opinion. The basic legal issue is did you convey title but only retain a security interest in the property until the purchase price was paid. If that was the essence of the contract then your buyer may actually own the property and the property could be subject to a lien although the balance owed to you as a secured creditor, if it was done properly, would be protected and would have to be paid to you first if the property is resold. If the contract is such that you remain in title and title doesn't convey until the purchase price is fully paid, then there cannot be any lien attaching that is due to a creditor of the buyer because the buyer doesn't own the property. Bottom line, any judgment against the buyer is or can be a lien against any real property interest the buyer owns or has.
Don't assume that you own the property - your legal transaction with this buyer has created some type of legal interest that the buyer has in this property. Get a legal opinion from an attorney to be sure what risks you have in this situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
