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Owner financed sale agreement

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Just Blue

Senior Member
Well heres hoping they see this and are willing to help/share
OH! You meant on the site! That is kinda unlikely...but perhaps one of the attorney volunteers may have some advice. IMO you're much better off spending $50.00(ish) on a consult with a local RE Attorney.


Senior Member
Tochsia Many states where real estate that is sold via contract for deed (installment payments directly to owner ) the state might use the same court as a landlord would for evictions ( unlawful detainer court) if your state does then perhaps the clerk of the court in your county can give you a blank set of forms used to file so you can see what they ask of you in order to file. BUT since you so called sold it you cant claim you want them out for unpaid rent like how its done with a tenant. SO it goes back to consulting with a attorney , You said the home isn't worth much , well it still has a value and perhaps once you re take control of the property and have her out you can just re sell it to someone in a cash only sale and use that to pay for the legal services you needed and just be happy your done with it ( do not do so called do it your self deals again for real estate with out having a attorney set up the sale and make sure its done right & recorded , there is nothing wrong with doing a normal contract for deed property sales but doubt a contract clause that says it cannot be recorded would be allowed by a court , recording a contract is the only way a buyer can protect them selves from things like say a seller (vendor) dies and now the property could be treated as a asset until a court says otherwise.)


Active Member
A year ago i inherited my dads house after he passed away. it is a very small place on a small lot. I work as a nurse and knew this lady who sat with some of my hospice patients. she seemed like a very nice old lady her self who needed a place to live so i decided to try to help her out. I wrote up an owner financed sale agreement and disclosed everything under the sun to her. We initialed and signed everything in front of a notary republic and the stamped behind us. That was as "legal" as it got. I did charge anything to move, no finance charge, no interest. Just $200 a month for 45 payments and i will sign it over to you. Now she has stopped paying and got ugly. I think i have to go through foreclosure and/or file for ejectment but im not sure. anyone out there that can advise me?
You tell us that you patterned this "owner financed sale agreement" from a source that you "downloaded" from the Internet. Also you ask if you can proceed with foreclosure. (Noting that Alabama's landlord tenant laws (ejectment) will provide no benefit to you.)

My questions then are, and it is essential to know:

Did the downloaded model recite your legal remedies as the seller in the event of the buyer's default and were those remedies incorporated in the signed document? (That language would be similar to the following:)

"Should the Buyer fail to pay any one of said installments on the day the same falls due and such default shall continue for thirty days - time being the essence of this the essence of this contract - this contract shall at the option of the of the Seller be terminated, and the Seller, her agents or assigns, may enter upon the said property and take possession thereof, and in that event, all rights and interests given to the Buyer by this contract shall cease and terminate, without any right in the Buyer for reclamation of any monies paid, or improvements made under this contract; but all monies so paid shall be and remain the property of the Seller and shall be held and retained by her as compensation for the rent or use and occupation of the said property, and the Buyer agrees to promptly and peacefully surrender possession of the said premises."

I will await your response.

Incidentally, installment sales agreements of this nature are often referred to as "Contracts for Deed", "Land Contract" and in Alabama and some others "Bond for Title". And although for you it is might late here is what Alabama's Supreme Court has to say about them: Hicks v. Dunn, 622 So.2d 914 (1993)

"The use of a bond for title to convey land is an archaic means to transfer ownership of land. (Their use) is generally disfavored as dangerous and unsound because it is more likely to result in litigation than the use of a mortgage transaction. The use of a bond for title to convey land should be very carefully considered if not entirely abandoned. Citing Gay v. Tompkins, 385 So.2d 973 (Ala. 1980;

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