What laws apply to a seller of poor-condition houses on contract?

Full question:

If there is a guy that lives in another state that buys up houses that are in poor condition and sells them on contract, does he have laws he has to follow. Was told passed inspection and there is no way it did. Anything we can do? He has several people "take care " of the properties so he should know condition. Is this right?

  • Category: Real Property
  • Subcategory: Contract for Deed
  • Date:
  • State: Indiana

Answer:

Yes, the seller must follow the same laws as anyone else. If he sells on a contract for deed or land contract, he must comply with the laws of his state regarding such contracts. Each state has its own requirements for seller's disclosure forms, which may be necessary. However, in all states, sellers cannot commit fraud by failing to disclose hidden defects that are not visible. Selling properties 'as-is' may reduce the seller's liability, but he cannot make false representations about the property. If an agent is acting on his behalf, the seller is generally responsible for the agent's actions. The contract should include terms addressing what happens if payments are not made.

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

Affording a $300,000 house on a $70,000 salary depends on several factors, including your debt-to-income ratio, credit score, and down payment. A general guideline is that your monthly housing costs should not exceed 28-30% of your gross monthly income. With a $70,000 salary, your monthly income is about $5,833, meaning your housing costs should ideally be under $1,750. Consider additional costs like property taxes, insurance, and maintenance when determining affordability.