Contract terminations (including those in a Contract for Deed, more commonly called a Land Contract) are typically only valid for a breach of a specifically stated term.
While some states have buyer remorse laws, but there are no ‘seller’s remorse’ statutes.
This is a complicated legal question, and one that is est answered by an examination of a state’s specific laws.
Most mortgage contracts do not allow for the assumption of the debt by another party, even if that assignment is for the same property.
We suggest a careful reading of the existing mortgage contract, as most mortgage documents specifically prohibit such an action.
If a land contract is no longer in effect (i.e., assuming that the ORIGINAL Land Contract has been fulfilled and both parties to that original contract are in agreement on this issue), you may wish to prepare and file a termination statement with the State.
A good Land Contract document addresses a secondary sale within its terms (all of Standard Legal’s Land Contracts do!). If the existing Land Contract spells out the terms for any sale by the Land Contract buyer, those terms should be followed expressly.
The vast majority of states have no firm set time period or “grace period” for requiring the tender of a Deed for real property upon the completion of payments on a private mortage.
Under a Land Contract, the responsibility for the property insurance payment and the securing of a policy is a negotiated item.
A Land Contract, like all other contracts, can be transferred, sold or assigned — so long as the document itself permits a sale or assignment, or all parties involved in the existing contract consent and agree to such sale or assignment.
There is indeed a risk to a Land Contract buyer if the Land Contract seller has a mortgage on the property being contracted. Buyers need to protect themselves during the purchase negotiations.