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Contract for Deed
What Do I Need to File if a Buyer on a Contract for Deed Defaults?

What Do I Need to File if a Buyer on a Contract for Deed Defaults?

Q: What happens if the buyer defaults on a contract for deed?

If the buyer defaults on a contract for deed, the seller can send default and forfeiture notices as required by the contract. If the buyer does not remedy the default, the seller may take back the property, often by filing a notice of cancellation with the county recorder's office if the contract was recorded.

Q: Do I need to notify the buyer if I take back the property?

Yes, it is generally advisable to notify the buyer in writing if you are taking back the property due to default. This ensures that the buyer is aware of the situation and can take appropriate action if they wish to contest the default or seek a resolution.

Q: Can I sell the property again after taking it back?

Yes, after taking back the property, you can sell it again. However, ensure that you have properly canceled the previous contract for deed and that all legal requirements are met. It may also be wise to disclose the property's history to potential buyers.

Full question:

Last Year I sold a parcel I owned in Elko County to another party using a Contract For Deed. The buyers have defaulted and I have sent 2 Default Notices and 2 Forfeiture Notices to them by registered mail. I am now taking the property back, but wanted to know if I need to file any legal forms with the County Recorder. I already called and had the Treasurer's Office change the tax billing address back to my own.

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

Answer:

A notice of cancellation of the contract may be filed. The answer will depend on whether anything was filed with the recorder already regarding the transaction. Typically, the deed isn't transferred until the buyer makes final payment, so there wouldn't be a need to record a new deed in the case of buyer default since the buyer wouldn't have the deed in their name yet. In some cases, a contract for deed may be filed. If you or the buyer filed the contract for deed with the land recorder's office, then a notice of cancellation of the contract should also be filed.

If you are unsure of what is on record, we suggest contacting the land recorder's office where the property is located to inquire about filings on record. Often, the clerk of courts may be able to direct you to a searchable online records database.

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

What is a contract for deed?

A contract for deed is a legal agreement where the seller finances the purchase of property for the buyer. The buyer makes payments directly to the seller, and the seller retains the title until the buyer pays the full purchase price. This arrangement allows the buyer to occupy the property while making payments, but the seller has the right to reclaim the property if the buyer defaults.

What happens if the buyer defaults on a contract for deed?

Do I need to notify the buyer if I take back the property?

How do I file a notice of cancellation?

To file a notice of cancellation, you typically need to prepare a written document stating your intent to cancel the contract for deed due to the buyer's default. This document should include relevant details such as the property description and the buyer's information. Once prepared, you can file it with the county recorder's office. It may be beneficial to consult with an attorney to ensure proper filing.