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Friday, 28 February 2020
Agent Resource Center
Agent Resource Center

Question: Your listing is a single family residence and find that your client is purchasing the home under a land contract. In reviewing the contract, you find there is no acceleration clause or clause prohibiting a sale/assignment. Which is correct:

Written by Posted On Wednesday, 15 January 2020 05:00

(A) Your seller could sell the home and take back a purchase money trust deed as long as he keeps up the payments on the land contract
(B) Your seller must pay off the land contract before he can sell his contract
(C) Your client can sell the home on another land contract and need not obtain permission from the titleholder
(D) Your client can sell and give a grant deed if he obtains written permission from the titleholder

 

Answer:  (C)  Since the land contract does not prohibit a sale or assignment, a person may transfer his interest without paying the contract. Since he does not hold the title to the property at this time, he cannot give a grant deed.

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