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. He is subject to the same laws as anyone and if he is selling on a contact for deed or land contract he has to comply with the laws of the state governing the contract. Each State has their own laws on required seller's disclosure forms and when they are required.However, in all States the Seller cannot commit fraud by not disclosing hidden defects in a home that are not visible. If the properties are sold "as-is" in their present condition this could reduce the liability of the seller but they still cannot make representations that are false.
If an agent is working on behalf of this person the agent's action can generally bind him and he would be responsible for their representations.
The contact for deed should contain provisions about 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.
