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Contract for Deed
Am I entitled to my five years of payments back after purchasing the property?

Am I entitled to my five years of payments back after purchasing the property?

Q: Is there a statute of limitations on past due rent?

Yes, there is a statute of limitations on past due rent, which varies by state. Typically, landlords must file a lawsuit to recover back rent within a specific time frame, often between 3 to 6 years. It's important to check your state laws for the exact duration and any applicable conditions.

Q: What is the 50% rule in rental property?

The 50% rule in rental property investing suggests that you should expect to spend about 50% of your rental income on operating expenses, excluding mortgage payments. This rule helps investors estimate potential cash flow and profitability. It's a guideline and may vary based on property type and location.

Full question:

Have been leasing a property for 15 years . Was told by the court 5 years ago that I had to purchase the property. Just was able to come up with the money, so was charged 5 years of interest. What about my 5 years of payments? Aren't i entitled to them back ?

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

Answer:

The resolution of your situation depends on your agreement with the property owner and the court order regarding payment. If you had a contract for deed, typically, if the buyer defaults, the seller can cancel the contract, reclaim the property, and retain previous payments as liquidated damages. In a contract for deed, the buyer does not receive the deed until all payments are completed. Therefore, ownership is not transferred until then, and the property can be foreclosed if payments are not made. Your obligation to pay for the property is separate from ownership. While payments can be negotiated between you and the seller, until the deed is transferred, the titled owner remains responsible for property taxes, which may be included in rental negotiations.

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

Can my landlord use my electricity without my permission?

No, your landlord cannot use your electricity without your permission. Electricity is part of your rental agreement, and you have the right to control its use. If your landlord needs access to utilities for maintenance or repairs, they typically must provide notice and obtain your consent. Unauthorized use may violate your rights as a tenant.

What happens if I lose money on my rental property?

If you lose money on your rental property, it may affect your overall financial situation and tax liabilities. You can usually deduct rental property losses from your taxable income, subject to certain limitations. It's advisable to consult a tax professional to understand the implications and to explore options for mitigating losses.

Is there a statute of limitations on past due rent?

What does leasing mean in court?

Leasing in court refers to the legal agreement between a landlord and tenant regarding the rental of property. It outlines the terms of occupancy, including rent, duration, and responsibilities. If disputes arise, such as eviction or breach of contract, these agreements are often examined in court to determine the rights and obligations of each party.

What is the 50% rule in rental property?

Can I write off a loss on my rental property?

Yes, you can typically write off a loss on your rental property against your taxable income. This includes operational costs, depreciation, and any losses incurred. However, there are specific IRS rules and limitations, such as the passive activity loss rules, that may affect your ability to deduct these losses. Consulting a tax professional is recommended.