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| CRE Online > Real Estate Law > Bill Bronchick > Question and Answer |
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Question by Homer:
My question is a two part question. (1) I am a soldier in the US Army. I did a Formal Assumption with another soldier in 1996. The soldier later got married. The soldier did not file a deed in the County Courthouse, so the deed is still in my name. The soldier has also not paid his Home Owners Association Fee since, but because the deed is still in my name the HOA filed a judgement against me. Now the soldier wants to sell the home but can't because he doesn't have a filed deed. The soldier sent me a new deed to be signed, but this time he has his wife's name on it. I have since gotten divorced and changed my name and he has my new surname on it as well. On our original loan/deed it only shows his name because he was not married at the time and it shows my married name. My question is does that make a difference. And when this is filed in the courthouse will it be effective as of the date filed (1999) or the date when we first settled (1996)? Answer By William Bronchick: (1) Title is conveyed when the deed is signed and delivered. Recording is not required by law. It is for the protection of the buyer so that you don't re-convey the property to someone else. This, obviously, is not the issue here. The Homeowner's Association Dues are a charge against the property, not you personally. If you notified the HOA, they should have changed it with their files. The soldier to whom you delivered a deed should record it. If he assumed liability for the note, you should have been released from liability, otherwise his default may result in liability against you. (2) An installment land contract is a sales agreement wherein the buyer has possession of the property and makes payments of principal and interest to the seller for all or part of the purchase price. The seller retains title in his name as security for buyer's performance on the agreement. It is similar to a mortgage and considered a sale for tax purposes. As a side note, the VA regulations state that a land contract sale does not violate the due on sale provision of the mortgage. 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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