Q: I currently have a valid registered land contract for a house with one person.
But found out there’s a lien on the house with someone else. The person with the lien passed away recently. If I end up paying for the house who does the money go to? Or should I keep paying my land contract and he pays of the lien ?
A: Land can be sold with liens attached to it. And whatever tax liens there are on the land will have to be satisfied before you or anyone else receives the deed.
A: The lien would follow the estate of the deceased. So whoever owned the property, their Estate will own a beneficial interest in the property, subject to the lien on the property.The Estate of the deceased will likely be bound by the terms of the Land Contract that you signed. You should examine the language of your land contract to see if it says it is binding on "heir, successors and assigns" or other similar language. Check the terms of the Land Contract to also see if there is some sort of acceleration clause (requiring you to pay in full) in the event of the death of the other party. If there is no language like this, then the Land Contract should be binding on the Estate and you should continue making payments to the Estate of the Deceased. As a practical matter, the Estate might be open to you paying them off in full for a lesser amount, instead of receiving payments over time. Perhaps this is something you can negotiate with them if you are able to obtain some other form of financing and pay them off early. After you review your Land Contract, I recommend sitting down with an attorney who can review the Land Contract with you and discuss your options moving forward .
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.