What Happens with Land Contract Heirs if the Seller Dies?

If the Seller in a Land Contract dies before the contract payments are made and the property title transfers, how the Land Contract document itself is written has a significant effect on the process.

A careful reading of the specific Land Contract document is required to address how the Buyer and the heirs of the Seller may proceed.

A Land Contract may or may not be binding upon the heirs after the death of the Seller. The language of the agreement that was signed by both parties will control how the property is treated.

If the contract makes the arrangement binding on the heirs of the Seller, the contract would be enforceable against the Seller’s estate and in turn his or her heirs.

But if there is language in the contract that would cause the contract to terminate, the agreement may terminate upon the death of the Seller.

So it is critical to read and understand the document in place for the Land Contract. And it is even more critical to consider and outline during the Land Contract drafting process the many realities that could occur during the contract term.