Contract for Deed

[D_Chacon]

What is the name of your state (only U.S. law)? VA

I sold a home in 2010 via a contract for deed that is still in effect. I recently found out that the "buyer" established a towing company (an LLC) and used the home address for the business address. There is nothing in the contract about using the home as a place of business. I was just wondering if I should be worried about a 3rd party having a claim to the property if something goes wrong with that business. I know that an LLC is supposed to protect the personal property of the owner of the business, but I read somewhere that if the business is undercapatilized that it could put the property at risk. Is this true? If the "buyers" get sued could someone else put a lien on the home?

Thanks.

 

[FarmerJ]

I suggest you speak to the attorney who prepared your contract for deed, Since you are the vendor in this contract (mortgage holder) you have first mortgage claim to the property so if the vendee of the property has legal problems and someone attempted to go after his end of his legal interest in your property I would imagine your contract may have addressed that ? ( what does your CD say about liens from others or the property staying lien free while its under contract ? ( you might consider having your attorney go over the contract with you again so you fully understand it) No matter what here your mortgage interest in this property will not change , the buyer could sell to another person and that does not change anything unless you are paid off. So speak to a real estate atty to learn what you might have to do should a third party take legal action against the vendees legal interest in the property.