Home Selling in 75090>Question Details

Carolw4956, Home Seller in 75090

do i have to wait for lien release on house before I send contract for deed to title company?

Asked by Carolw4956, 75090 Mon Jun 15, 2009

Our house burned, neighbor wants to purchase the house and land, the house is fixable, the insurance paid and I sent lender a check to pay off loan. We just did a contract for deed on house, he paid 1000. up front and owes 7000. at close. No financing, just cash. Do I have to wait for the lien release from lender before I send in contract to the title company to start closing?

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You need to see a real estate attorney. The best RE attorneys I know say never ever use contract for deed.

It should not cost more than 2-$300 for the attorney, but there will be additional fees for title insurance, lien release, escrow fees, etc.
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0 votes Thank Flag Link Tue Nov 9, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Actually, you can face criminal charges for allowing a contract to purchase deed in Texas while there is an existing lein on the property. You need to talk to a qualified real estate lawyer ASAP.
0 votes Thank Flag Link Sun Aug 1, 2010
You need to involve a board certified real estate attorney to give you advice on all contract for deed purchases. Probably smart idea not to charge interest from what I understand, but there is nothing to close if you did contract for deed. Buyer doesn't actually get the deed, until note is paid with contract for deed. Buyer might want to record contract at the courthouse.
0 votes Thank Flag Link Mon Jun 15, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Since it's all cash, it will most likely be a quick close....and the buyer will want a clean deed. I would contact your lender and find out how long it will take to release the lien.

So your land is only worth $8000? Do your have an attorney or an agent involved in this?
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0 votes Thank Flag Link Mon Jun 15, 2009
Cindi Hagley, Real Estate Pro in San Ramon, CA
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