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Contract for Deed
How Do I Cancel the Recording of a Contract for Deed?

How Do I Cancel the Recording of a Contract for Deed?

Full question:

How can an agreement for deed contract which never should have been submitted to the clerk for recording be removed from public records or reversed when only one of the parties of the contract is available? The 'buyer' did not complete the transaction and never bought the property but paid to have a copy of the contract recorded as if it were real, resulting in a change in the tax records reflecting him as the new owner. The contract is null and void and the culprit has moved out of state and can not be found.

Category: Contract for Deed
Date: 04/07/2025
State: Florida

Answer:

Typically, filing of a contract for deed will not change the ownership records for the property until the payments are complete and a new deed is executed, since a contract for deed alone doesn't change ownership. A contract for deed, or land contract, is often used as an alternative means of financing the purchase price of property. The buyer does not receive an actual deed until payments are made under the terms of the contract for deed agreement. Until the buyer receives a deed, ownership isn't transferred and the property is subject to being foreclosed on if the mortgagee/owner defaults on the mortgage. The responsibility for payment for the property is a separate issue from the ownership of the property.

A quiet title or trespass to try title action is the method of determining title to lands. In a quiet title action, it is possible to ask the court to issue an injunction to force another to do or refrain from doing an act. An injunction is an equitable remedy that the court may order when money damages will be inadequate to remedy the harm suffered. The court may also order records to be corrected to reflect true ownership of property. If the defendant doesn't appear or file an answer to the complaint, a default judgment may be entered in the plaintiff's favor.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

When a contract for deed is in default, what process must the seller use to regain possession and equitable title to the property?

When a contract for deed is in default, the seller typically must provide notice to the buyer of the default and allow a specified period to cure the default, as outlined in the contract. If the buyer fails to remedy the situation, the seller may initiate a legal process known as eviction to regain possession of the property. Additionally, the seller may seek to terminate the contract and reclaim equitable title, but this often requires legal action to confirm the seller's rights in court.

How do you record a contract for deed?

To record a contract for deed, you must first ensure that the contract is properly signed by both parties. Then, file the original contract with the county clerk or recorder's office in the jurisdiction where the property is located. This process typically involves paying a recording fee. Recording the contract provides public notice of the agreement and protects the buyer's interest in the property.

What type of consideration is required in order to make a deed valid?

To make a deed valid, there must be valid consideration, which is usually a monetary payment or something of value exchanged between the parties. This consideration must be sufficient to support the transfer of ownership. While the amount does not need to be large, it must be something tangible to demonstrate a legitimate transaction.

Can you remove someone from a deed without their permission?

Generally, you cannot remove someone from a deed without their permission, as this would require their consent to transfer or relinquish their ownership rights. If the co-owner agrees, a new deed can be executed to reflect the change. If consent cannot be obtained, legal action may be necessary, such as a partition action, to resolve ownership disputes.

How do I report a contract for deed on my taxes?

When reporting a contract for deed on your taxes, you typically report the income received from the buyer as interest income on your tax return. Additionally, you may need to report any gain or loss from the sale of the property when the contract is fulfilled. It's advisable to consult a tax professional to ensure compliance with IRS regulations and to understand how to properly report these transactions.