What is an unrecorded land contract?

Answer by  withsmluck (793)

Usually an unrecorded contract of any nature means that you are making payments directly to the seller and they will not record you as owner of the property until the whole amount is paid in full. This can be risky and should only be done with guidance of an attorney.

Answer by  patti (29325)

The land contract must be recorded in order legally establish ownership. If the contract is not recorded, the original owner is still responsible for the property and taxes, and maintains all rights. It's not illegal to not record it; it's simply not wise.

Answer by  Dean (4035)

If the land contract is unrecorded, the original owner still has all the rights and responsiblities of, to and for the property. He can, for example, use it as collateral since it is still listed in his name. It's not illegal that it's not filed; it's just sloppy.

Answer by  Devin98 (487)

A land contract can be recorded in your county's Recorder's office. Most are not recorded, although, recording will protect you if the homeowner tries to sell to someone else.

Answer by  Hewitt302 (1720)

It's important to get any land deal in writing. If you signed a contract, make sure you have a COPY of that contract, and if the seller isn't recording the sale, ask him the reason. It might be wise to have a third party involved in the land sale.

Answer by  withluck (1745)

Unrecorded land contracts are sometimes known as a contract for deed. The contract itself is not recorded, but the agreement will state that the deed is to be signed over to the buyer and recorded at the time that the contract price is paid in full. An attorney can supply a contract that will outline the terms and payment schedule.

Answer by  tamarawilhite (17883)

If it is not in writing, it becomes a he said - she said argument as to the terms. And with property involved and the costs involve, not having it in writing makes it difficult to enforce. Furthermore, you cannot get a mortgage or sell property without a land contract.