New Orleans, LA asked in Real Estate Law for Alabama

Q: Why do they want to change my Contract for deed to Vendor's lien deed?

I am purchasing my home with a Contract for deed for the last 4 years. Received an email today from seller wanting to change my Contract for deed to a Vendor's lien deed. What does this mean for me?

Related Topics:
1 Lawyer Answer

A: Without being able to read minds, my best guess is property taxes. With a contract for deed, you don't own the property and therefore are not responsible to pay the property taxes. Of course, you are running a huge risk that the owner ultimately won't transfer title, or that the owner has pledged the property as security for a loan (like a mortgage) and may lose it to foreclosure, or that a creditor of the owner will seize it to satisfy a judgment, or that the owner will die and his heirs won't follow through with the sale, or that the owner will file for bankruptcy and cancel your agreement as an executory contract or that the bankruptcy trustee will require that it be sold to pay his creditors.

If the transaction is converted to a sale with a vendor's lien retained, you do own the property and are therefore legally responsible to pay the property taxes.

Why not simply ask the owner of the property why they want to make the change?

1 user found this answer helpful

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.