Legal insights and tips from the veteren Attorney of 40 years.
Land contacts are only good for attorneys to make money on in the future. A land contract should never be used.
The major disadvantage for the Seller is that regardless of the language in the contract, to evict the non-paying purchaser one must file a foreclosure action in circuit court per Kentucky law.
You are looking at up to $10,000.00 in attorney fees, filing fees, master commissioner fees, advertising, appraisal fees, etc.
The major disadvantages for the Purchaser are that the Seller can still borrow money against the real estate under contact, not have the mortgage paid off when the land contract is paid, or file bankruptcy and the real estate may be tied up by a Bankruptcy Trustee.
These are just a few of the pitfalls. There are others and
they can be a nightmare for either the
Seller or the purchaser.
For a meeting with one of our lawyers, call our office in Corbin at 606.528.5001. Personal injury and bankruptcy clients are entitled to a free initial consultation. We maintain flexible office hours to accommodate your needs.
Please Note: David Smith, Marcia Smith are independent attorneys with individual areas of practice.