QUESTION
What happens when the owner of a land contract dies?
Asked on Jul 09th, 2012 on Landlord and Tenant Law - Arkansas
More details to this question:
I entered into a land contract with a gentleman who passed away last week; I am up to date and have kept up the contract. This was a basic land contract but had no mention of what would happen should he pass away, well he did. His daughter is the executor of his will and she told me that I have to pay the remaining 19,000 in full or move so she can divide his properties between the other 8 children. Do I still have a binding contract with the estate and can she make me do that, what happens to all monies I have spent to make this place livable?
23 ANSWERS
Bankruptcy Law Attorney serving Huntington Woods, MI
at
Austin Hirschhorn, P.C.
Update Your Profile
The death of the maker of the land contract does not terminate the contract. It is still enforceable according to its terms so you should continue to make the payments you are obligated to make. This might be a good time for you to try to get financing to pay off the contract and try to negotiate a discount for early payoff of the contract.
Answered on Aug 27th, 2012 at 3:34 PM
Criminal Defense Attorney serving Montrose, NY
at
Law Office of Jared Altman
Update Your Profile
A lot depends on the paperwork. Does the contract say words to the effect of "this contract is binding on the parties' "heirs, successors and assigns"? If so, the. The executor must honor the contract.
Answered on Aug 13th, 2012 at 12:53 PM
A "land contract," which is also called an "agreement for sale" and a "contract for deed," may or may not be binding on the heirs. The language of the agreement you signed will control. Look for the words "heirs" in your agreement or have a real estate attorney look at it for you.
Answered on Aug 13th, 2012 at 12:53 PM
Leonard A. Kaanta
You do have a contract that you can enforce, you need to talk with an attorney.
Answered on Aug 13th, 2012 at 12:53 PM
The executor should be bound by the contract unless there is something in the contract which allows for acceleration under the circumstances. You should consult a real estate attorney to have the contract and all relevant facts reviewed.
Answered on Aug 13th, 2012 at 12:53 PM
Criminal Defense Attorney serving Tarzana, CA
at
The Law Office of Anthony A. Roach
Update Your Profile
If you are talking about a land sale installment contract, rather than a standard purchase contract, I would say the estate is bound by it.
Answered on Aug 13th, 2012 at 12:53 PM
General Practice Attorney serving Glendale, CA
at
Law Office of Michael Stafford
Update Your Profile
I would suggest that you immediately consult with an attorney with regard to your rights and remedies. Land /sale contracts are not encouraged for these reasons. Without reviewing the contract and having more information I can not advise you further.
Answered on Aug 13th, 2012 at 12:52 PM
Business Law Attorney serving Bingham Farms, MI
at
James T. Weiner, P.C.
Update Your Profile
Contact and Attorney Immediately.. you do not have to pay it all or move... she is giving you bad information!If you are paying on time and not in arrears you simply have a new payee.. you pay to the estate.. presumably the daughter if she is the personal representative of her dad's estate.
Answered on Aug 10th, 2012 at 10:00 PM
Steven D. Dunnings
You have a binding contract, she just wants to close out the estate and does not know what to do with the contract.
Answered on Aug 10th, 2012 at 9:57 PM
Employment & Labor Attorney serving Weston, FL
at
Behren Law Firm
Update Your Profile
You would need to have a lawyer look at the contract and research the issue.
Answered on Aug 10th, 2012 at 9:54 PM
Transportation Attorney serving Mamaroneck, NY
at
Palumbo & Associates, PC
Update Your Profile
His daughter has no standing to do anything. The estate needs to appoint an executor or administrator until then the contract is in limbo. You need a detailed consult with a real estate attorney ASAP.
Answered on Aug 10th, 2012 at 9:44 PM
Real Estate Attorney serving South Jordan, UT
at
James T. Dunn P.C.
Update Your Profile
The agreement is binding on the estate.
Answered on Aug 10th, 2012 at 9:41 PM
Business Law Attorney serving Livonia, MI
at
Gerald A. Bagazinski
Update Your Profile
Check the contract. The contract terms should be binding on his heirs and administrators. If that is what the contract says she is incorrect.
Answered on Aug 10th, 2012 at 9:40 PM
Landlord Attorney serving Springfield, MO
at
Chmielik Law Firm, LLC
Update Your Profile
In Missouri, just because a party to a real estate contract passed away, does not mean the contract is void or cancelled. The contract and obligations continue on, and the contract can be specifically enforced against the personal representative of the estate (unless both parties agree to cancel or modify the contract). You may have to file an action in the Probate Court against the Personal Representative if they are refusing to perform the owner's obligations under the contract. So yes, you should still have a binding contract with the owner's estate.
Answered on Aug 10th, 2012 at 9:37 PM
Criminal Defense Attorney serving Ridgeland, MS
at
Jones Law Firm
Update Your Profile
I need to see the "land contract" in order to properly respond to your question.
Answered on Aug 10th, 2012 at 9:31 PM
Dennis P. Mikko
When the land contract vendor died, his interest in the land contract passed to his estate. His estate is bound by the terms and conditions of the land contract. If there is no acceleration clause upon death, then you could continue to make your monthly payments. However, depending on the interest rate of the land contract, you might want to explore the possibility of a mortgage which might give you a lower rate. Even if the daughter is nominated as personal representative in the decedent's will, she will have to start a probate estate in order to be granted power to act. The Will itself is like a road map telling the personal representative what to do. Only a Probate Court can grant a personal representative the power to do it.
Answered on Aug 10th, 2012 at 9:27 PM
Brett Alexander Pedersen
Such an agreement would usually be binding, especially if you have partially performed. Are there provisions in the contract re successors or death.
Answered on Aug 10th, 2012 at 9:23 PM
Real Estate Attorney serving Williamstown, NJ
at
Law Offices of Slotnick & Schwartz
Update Your Profile
The Estate must comply with the terms of the Contract.
Answered on Aug 10th, 2012 at 9:23 PM
That's an interesting question. I believe that the Estate of the man with whom the land contract is with must honor the terms of the land contract, unless the land contract says that the debt can be accelerated. Even then, you may have recourse to challenge an acceleration provisions.
Answered on Aug 10th, 2012 at 9:22 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
The asset of the estate is the land contract, not the property. As long as you are current you are okay.
Answered on Aug 10th, 2012 at 9:22 PM
The contract is still in place. So, you still have to pay for the property, just like you promised. And the estate has to give you a deed... (after you pay in full) just like the gentleman promised.
Answered on Aug 10th, 2012 at 1:53 PM
Construction Attorney serving Bloomfield Hills, MI
at
Law Offices of Jeffrey Z. Dworin
Update Your Profile
The land contract continues on its own terms except that the payments are made to the personal representative. Unless the contract itself calls for acceleration, there is no acceleration. Make the payments to the "Estate of" the vendor.
Answered on Aug 10th, 2012 at 1:47 PM
Child Custody Attorney serving Malvern, AR
at
Law Office of Gregory Crain
Update Your Profile
You have binding contract with estate. Go into court and have it approved.
Answered on Aug 10th, 2012 at 1:07 PM