Q: we sold our cottage on a land contract. The buyer is asking for a quitclaim deed so she can get help with repairs since
she is now handicapped and habitat for humanity is saying she needs this in order for them to help her out. My concern is the loss of money owed to fulfill the contract.
A: Your concern is well placed. If Habitat require that the buyer be the owner, you could give a deed in exchange for a mortgage.
Trent Harris agrees with this answer
There are significant differences between land contracts and mortgages and before you do anything I’d confirm directly with the habitat attorney they won’t help if someone has equitable title instead of legal title and then consult with your own attorney before you do anything.
Most assuredly the one thing you should NOT do is simply provide a QCD. Get local legal representation.
A: Until the buyer satisfies the terms of the land contract, they should NEVER be given a deed. That is the point of having a land contract. It works like an installment sales contract; only upon successful completion of all terms will the buyer satisfy the agreement and have a legal right to the deed. Until all installments are paid, the buyer has not earned the right to property. See more at www.provenresource.com
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