Contract For Deed

I have question about it:

If someone buys a house in FL and they use a contract for deed, can they then sell it? What happens at closing?

Here is an example: billybob buys a house from nancy for 50,000 they use contract for deed and billybob gives nancy 5,000 and agrees to interest only at 7% with a balloon in 90 days. Billybob finds new buyer for house at 75,000 in 60 days. New buyer, lets call him Raphael, is getting conventional financing for 90% of the 75K and he wants billybob to hold a second for the other 10% of the selling price. How does the actual closing work?

This is a real deal the names have been changed blah blah blah....... cool grin [ Edited by Ricker on Date 03/08/2004 ]

Comments(4)

  • Ricker8th March, 2004

    Any ideas? Did I put this in the right area?

  • NancyChadwick8th March, 2004

    Did Nancy give you an unconditional right to assign?

  • Ricker8th March, 2004

    She gave it to billybob..... yes

  • kjwjr5th April, 2004

    Hi Ricker,

    Don't know if you still need info on this issue...

    Billybob simply assigns the land contract to R (with conditions for prompt closing, getting paid, etc.). At closing, N is taken out for the 50k, billybob walks away w/ 12.5k and a second (receivable) for 7.5k.

    R gets a fee simple deed (encumbered by the 1st and 2nd mortgages).

    If you plan to do land contracts... make sure they are notarized and recordable.

    Ken Wade

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