Question from Jim Schrienk:
You stated that when a sale or purchase is made through the use of a Land Contract that the seller reports it as a sale and the buyer reports it as a purchase, therefore the buyer can claim the interest. How is this accomplished if I sell a house on Land Contact and don't record the contract due to the loan that is on, in fear of the bank calling it due? Also, doing this unrecorded "wrap" how do you show it as a asset to other banks when it's unrecorded. And how do the buyers prove that they are buying? Thank you for your time.
Answer By William Bronchick:
A document need not be recorded to be a valid transfer of ownership. Recording a document in a public place gives the world notice of transfer of ownership for the buyer's protection. Simply presenting a copy of a land contract to a lender is proof of the transaction.
Disclaimer: The foregoing is not intended to be given as legal, financial or tax advice, but intended for instructional use only. If you require legal, financial or tax advice you should seek the assistance of a qualified professional.
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