45 Responses to ““MOST LAND CONTRACTS ARE NOW DEAD IN INDIANA””

1. Allen Taylor
   June 10th, 2010 @ 4:16 pm

   Nice writing. You are on my RSS reader now so I can read more from you down the road.

   Allen Taylor

2. john karamanski
   June 10th, 2010 @ 6:32 pm

   Matt…As always you are clear and concise in telling the straight truth about Real Estate Rules and Laws, even when others do not want to face us to these truths

3. Gary
   June 21st, 2010 @ 11:24 am

   this is BS if you ask me , seems to me if a person buys a home and wants to sell on land contract to someone he should be able to do it ,,the right of an owner to sell a property anyway he wants should not be taken away by the government as long as there is no fraud involved. I deal with a few investors willing to buy for cash and then sell on land contract to local buyers and I feel they are providing a valuable service for these buyers,, they cant get money from a bank right now, they dont want to rent and throw money away,, LC is a good option and I hate to see it taken away by yet another LAW..

4. Matt
   June 25th, 2010 @ 9:05 pm

   I studied the constitution, unlike most in Congress. I have read the Federalist Papers, Frederick Hayek and the other great legal thinkers on freedom, limited government and individualism.

   I agree with your thoughts. Please write your Congressmen.

5. Michelle
   July 24th, 2010 @ 2:52 pm

   Can you tell me if this will apply to lease options as well?

6. Matt
   July 27th, 2010 @ 4:44 pm

   No, lease options would be excluded.

7. Lora
   December 21st, 2010 @ 6:58 pm

   My son has been paying me “rent” for a home which I wish to sell him on Land Contract and consider the amt of “rent” already paid to me as his “down payment.” He would just continue to pay me the amount of mortgage and escrow and have the house insurance in his name. Because it is now considered a “rental,” Indiana Property Taxes had qualrupled which is such a financial burden on me, who is a widow with her own mortgage & I wish to retire in 3 years. It appears this proposed land contract for my son is excluded under the “Safe Act.” Would you consider it a good idea to prepare the land contact myself? I have researched Indiana Contract laws. Should I have an atty or real estate person check it out?

8. Clint
   December 27th, 2010 @ 3:58 pm

   I understand that a sale with owner financing from one investor to another investor is excluded as well. That this law really applies to investors selling to owner occupants: is this true? If true then what’s to prevent the buyer/investor from occupying the property? Is there a time frame in which the buyer could not occupy to show initial intent? Is there a form that the buyer would sign saying they are an investor and not buying as an owner occupant? If a mortgage loan app is done there is a section for taking title (2nd home, owner-occupied, non-owner occupied, etc). If the app is check as investor and buyer signs would that be enough? What if the property remains in the sellers name and the agreement for deed is not recorded until after the payoff? Possible held in escrow with an attorney? Any other ways around this stupid law other then lease/option?

9. Donald
   January 9th, 2011 @ 12:26 am

   If the definition of a loan originator requires conformance to both items 1 and 2 above, can’t the investor selling on land contract simply NOT take an application and write out the LC on the spot? It doesn’t state that BOTH 1 and 2 must take place. And if I negotiate terms of a LC on behalf of my LLC, I’m not charging the LLC a fee or making a gain from that specific task, either.

   It seems that the intended thrust of the Safe Act is to regulate those individuals who take loan applications and then pass the loans on to secondary buyers.

10. Josh
    March 2nd, 2011 @ 11:42 pm

    I was wondering if you could tell me about a building a family member perchased on land contract. The building had three apartment in it. It was purchased 11 years ago for 150k. My family memeber paid 90k on the land contract until economy got bad and he gave it back. What happens now legally? My family memeber owns a home and I am purchasing a property from them rent to own. Are we in any danger of being suited for the remaining balance. The property was given back in same condition when it was purchased. The land contract involves two parties a seller and a buyer no third party lender. The contract was written by a lawyer just to make it offical. Since this is a defaulted land contract with equity paid shouldnt the land own simply take back the property and thats it?

11. Pat
    March 6th, 2011 @ 6:01 pm

    So if I am trying to buy a house on land contract who would I use to do the contract, negotiation etc? Do you have any referrals.
    Thanks

12. Matt
    March 18th, 2011 @ 2:03 pm

    I ALWAYS RECOMMEND USING A GOOD LAWYER IN YOUR STATE.

13. Matt
    March 19th, 2011 @ 12:07 am

    I recommend a lawyer to draft the legal documents.

14. Matt
    March 19th, 2011 @ 12:08 am

    I’d have to read the documents you mention in order properly to assess that situation.

15. Deb
    March 24th, 2011 @ 3:40 pm

    I purchased a home on land contract in 2007 it has been recorded and I pay the taxes (with qualifying exemptions) and insurance and association dues. THe problem is that the contract had a baloon payment due date in 2009, which did not get paid, the seller has continued to accept the payments and urges me to refinance. I would love to do this but wiht the tighter mortgage regs and being self employed I am having trouble obtaining financing. Is our contract still valid? I offered to sell the property and satisfy the contract, the seller tells me that I can not sell. What are my options without loosing my ##@@?

16. Matt
    March 28th, 2011 @ 7:29 pm

    What state are you in?

    I would need to see your contract to help you. I am perplexed as to why your seller thinks you cannot sell the home. Is there a pre-payment penalty in your contract?

17. Nancy
    April 2nd, 2011 @ 10:13 am

    Matt,

    Can you help define what is my responsibility? I live on the near east side of Indianapolis. There is a cement retaining wall that divides my property from an alley way that cars drive on. It runs almost the entire length of my property(about 100 feet). It is cracked and a third of it is leaning about 6-8 inches away from where it should be. There are wires from telephone poles connected to the crack where the wall and the alley meet. These wires are connected to the latter 2/3 which is not leaning as much. This past winter I have noticed significant changes and erosion is a problem. Is this my responsibility to fix?

18. Matt
    April 14th, 2011 @ 12:52 pm

    Nancy-

    My guess is that you are responsible. I would need to see a plat or survey, determine if there is an easement involved and see the physical structures you have described. It is impossible for me to say for sure without more information, but my “wild” guess is that you are likely responsible.

    If you would like to retain me as your counsel to discuss this in detail, please email me at matt@indybizlaw.com or call my office- 317.663.0650. I do not discuss client matter on this blog site to preserve attorney-client privilege and confidentiality.

    Thank you.

    Matt

19. Jeanine
    April 27th, 2011 @ 7:10 pm

    I purchased a home on land contract in 2003 it has been recorded and I pay the taxes without any exemptions (2220.22 a year) and insurance and association dues. The problem is that the contract had a baloon payment due date in 2008, which did not get paid, the seller has continued to accept the payments and urges me to refinance. I would love to do this but with the tighter mortgage regs and being self employed I am having trouble obtaining financing. Is our contract still valid? I live in Indiana and I offered to sell the property and satisfy the contract, the seller tells me that I can not sell. The papers were drawn up in 2003 by a lawyer. What options do I have, how do I contact you for a consultation and how much do you charge? I really appreciate that you are writing to assist others. It’s a great help.

20. Matt
    April 29th, 2011 @ 3:31 pm

    Jeanine-

    Great questions. Unfortunately, I cannot give you public advice through this blog site, and I’d need to read the contract.

    Contact me through my law firm, if you’d like my professional assistance. Send me an email at matt@indybizlaw.com.

    Thanks.

    -Matt

21. Cheryl Case
    May 31st, 2011 @ 3:40 pm

    For a land contract to be valid in the state of Indiana does it have to be drawn up by a lawyer? There are free generic forms online that can be printed and are basically a fill in the blanks. It seems like using these forms would be an unsafe why to do business. Thank you for any advice you can give.

22. Matt
    June 7th, 2011 @ 4:33 pm

    No, a lawyer is not required. In fact, realtors often draft land contracts. However, I personally think that many non-lawyers practice law by helping others with contracts and other legal documents. I think it is very dangerous and probably plain stupid to use a form from the Internet.

    A good alternative is a state-specific virtual law office- such as http://www.indianavirtuallaw.com/. FULL DISCLOSURE- That site is operated by my wife, who is also an attorney. Stay away from Legal Zoom and other non-lawyer form websites. Very dangerous!

23. Susan Burk
    June 17th, 2011 @ 10:40 pm

    I have a question. i have a land contract that required an initial down payment of $8,000.00, and I paid that. I have lived in the house for ten years. Now, I need to move. The contract I signed says I get nothing from the downpayment or ten years of house payments. If I were to stay, I would be half way through paying. I stupidly signed the contract. But it seems so unfair that I wonder if it is legal.

    In addition, the contract says the debt can be passed on to my relatives!

    Please let me know if I have a case to ask for a modified agreement. If I do, I’ll get an attorney.

24. Susan Burk
    June 17th, 2011 @ 10:40 pm

    PS- I live in Indiana.

25. Matt
    June 21st, 2011 @ 12:16 pm

    Hi Susan. You probably have some options.

    I cannot provide legal advice online to non-clients.

    However, if you’d like to talk to me privately, please send me an email at Matt@IndyBizLaw.com. Also, I would need to know the name of your seller to run a conflicts of interest check.

    Thanks.

    -Matt

26. Jennifer
    July 11th, 2011 @ 3:30 pm

    Matt – if you have owned and resided in the home, then leased it out as a rental, and now want to sell it on land contract, does this remain as an exception since we did use it as our personal residence? Secondly, if a land contract goes into default, do we have to follow all of the laws applicable to foreclosure or are we able to immediately evict? Thanks,

    Jen

27. Matt
    July 11th, 2011 @ 4:21 pm

    Jennifer-

    What state are you in?

    -Matt

28. Sherry
    July 15th, 2011 @ 3:19 pm

    Do private sellers offering land contracts fall under the SAFE act? Also, if you are a co-signor on a land contract and the buyer cannot fullfill the terms of the contract, does the seller have to give the co-signor a chance to fullfill the terms. And lastly, if a buyer has to walk away from a land contract, is there a time frame that the seller can take the buyer to court and sue them? Can they wait 2 or 3 months, than claim they cannot rent,lease or sell teh property and they now want to sue the buyer. Land contract is in Indiana and after buyer moved out, within 2 weeks, seller had re-sold the property.

29. Matt
    July 15th, 2011 @ 3:52 pm

    Sherry-

    Thanks for your inquiry.

    Please see my other comments regarding the applicability of the SAFE Act to land contracts in Indiana. That is not a simple answer, because of confusing signals coming from the Indiana Attorney General’s Office. I have addressed that issue several times in different articles. Please also listen to my tele-classes at http://www.MyREIAdvisor.com.

    As to your question regarding co-signors, I could not answer that question without seeing the contract.

    As to the filing of a lawsuit, I would have to see the contract to read the notice, opportunity to cure and remedies provisions of that particular contract.

    If you’d like to seek my professional assisatance on these issues, please contact me at my law office- http://www.indybizlaw.com/contact

    Thanks.

    -Matt
    -Matt

30. lavon klein
    July 18th, 2011 @ 9:21 am

    i sold my house land contract to a joe salem he stopped paying me he will not give me a copy of the contract he said he would send me he is avoiding me. he wont give me copies of anything he payed me cash every month untill it stopped completely he is a bar owner (many bars) I know hes has my house rented out. i never signed the deed Can you help me????

31. Chris
    August 2nd, 2011 @ 12:35 pm

    We have 3 acres of open land that we are trying to sell. A group of Amish are wanting to buy it and build a school on it. They want to purchase it on land contract. Any problems with this?

32. Matt
    August 3rd, 2011 @ 3:30 pm

    If you are talking about problems arising from the SAFE Act, you might be fine. However, the answer is a little complex. I would encourage you to listen to the two tele-classes I gave on the SAFE Act at http://www.myREIAdvisor.com. If you’d like me to provide a definitive answer, I’d require more data. You may email me at my law office, if you are interested in retaining my law firm to help you with this.

    Thanks.

33. crystal
    August 13th, 2011 @ 11:58 pm

    hello matt we entered into the purchase of a home 2 years ago. My husband and i both had great jobs we lost them and have fell behind and can not afford the 1350.00 month house payment. NOw we have agreed to vacate the property, but i have a disabled mother and need more then the 2 week they are offering what are are options? Also side question they have been getting the tax breaks on the property we have been paying for? please anyadvice would be helpful and apprectiated. thanks crystal

34. Matt
    August 15th, 2011 @ 11:26 am

    Crystal-

    I cannot provide legal advice on this website. I can only provide general information.

    If you’d like to retain my law firm to get answers to your specific legal questions, please feel free to contact me through my law firm- http://www.IndyBizLaw.com.

    Thanks.

    -Matt

35. Diana
    August 26th, 2011 @ 11:48 am

    I sold my property in Indiana on Land Contract. The buyer paid for 2 years sometimes late. Now I find he has filed Bankrupsy, IRS lien on other property and a divorce. It states the contract is null and void if bankrupy happens. My property is a second home for him. He agreed to a release of the contract. Do I need to file a quit claim deed with Starke Country, Indiana Thank you

36. Matt
    August 30th, 2011 @ 4:47 pm

    Diana-

    I cannot give legal advice on this website. I can only give information of a general nature that is educational in nature. If you need legal counsel, please feel free to contact me through my law office. http://www.IndyBizLaw.com 317-663-0650.

    Thanks.

    -Matt

37. Chip
    September 1st, 2011 @ 4:07 pm

    I was wondering…If my wife and I signed a land contract about five years ago does that mean that since this act has gone through that the contract is no longer valid, or does that just mean that land contracts after the act came to be require the owner to have the license and is they dont have the license they arn’t valid?

38. Matt
    September 1st, 2011 @ 4:56 pm

    The statute only applies to contracts dated after a certain date. The statute is not retroactive in its application. That would be unfair.

39. 關鍵字
    September 5th, 2011 @ 11:46 am

    Thanks I finally came to a website where the webmaster knows what they’re talking about. Do you know how many results are in Google when I search.. too many! It’s so irritating having to go through page after page after page, wasting my day away with thousands of owners just copying eachother’s articles… bah. Anyway, thanks for the information anyway, much obliged.

40. Mick McCoy
    September 9th, 2011 @ 8:57 pm

    Matt – Like Jen, I owned and resided in the home (Fort Wayne), then leased it out as a rentalfor four years, and now want to sell it on land contract. Does this remain as an exception since we did use it as our personal residence? Secondly, if a land contract goes into default, do we have to follow all of the laws applicable to foreclosure or are we able to immediately evict?

    Thanks from both,

    Mick & Jen

41. Matt
    September 9th, 2011 @ 10:07 pm

    A judge decides whether you are eligible for forfeiture, rather than foreclosure. You might be eligible for the exception under the SAFE Act. I cannot render legal advice on a blog site, so I cannot say for sure. You would have to contact me privately through my law firm for legal advice.

    Thanks.

42. Mick
    September 9th, 2011 @ 11:47 pm

    Thanks Matt. I really appreciated the online interview on SAFE. That answered my questions and was well-done . . .

43. Chris
    October 7th, 2011 @ 11:15 am

    I own a house that I lived in for 5 years. After I got married and began having children, we moved to a bigger house and put the old house up for sale. The housing market collapsed, and since then I have become a landlord. My question is, since I lived in the house, do I need a license to sell the house on land contract? Is it absurd in this economy to expect a potential buyer to pay 10% down with a 5-year baloon payment due, and monthly payments?

    Thanks-

    Chris

44. Megan
    January 1st, 2012 @ 9:17 am

    We wrote a land contract offer on property in Franklin co, IN but no land contract was ever signed. Our purchase offer states “$3000 down payment at land contract closing to be held by seller until final closing and will be applied to down payment to mortgage lender.” we no longer want to buy this place as it’s too far for my husbands new job. Since no contract was signed can they legally keep our money? How could I ask for it when we give our 30 day notice? And could I ask them to keep the last month rent from it? My husband has been out of work & hasn’t started his new job yet so we can’t pay this month.

45. Matt
    January 1st, 2012 @ 11:46 pm

    I cannot provide legal advice on this website. I can only provide general information.

    If you’d like to retain my law firm to get answers to your specific legal questions, please feel free to contact me through my law firm- http://www.IndyBizLaw.com.

    Thanks.

    -Matt

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