Legal Question in Real Estate Law in Florida
Contract for Deed
My parents bought a home for my wife and I through my dad's VA status. We provided all money for the downpayment, closing costs, etc........ We also pay the mortgage every month. We all signed a Contract for Deed saying simply that when we had sucessfully payed the mortgage, we would be given the Deed free and clear.
I recently heard of something called a "Quick Claim Deed" we could get that would add my wife and I to the Deed enabling us to get the Homestead exemption we deserve and possibly enable us to get on the mortgage.
Can you tell me anything about this?
Thank you,
1 Answer from Attorneys
Contract for Deed & Due On Sale Clause/ foreclosure
FACTS: Parents took title to a home and signed a V.A. Mtg. for me and my wife. We provided all money. We pay the mortgage. We signed a Contract for Deed that says when mortgage paid off, title would be conveyed to us. Heard of "Quit Claim Deed" that would put us in title enabling us to get Homestead exemption and possibly enable us to get a NEW mortgage.
Q. Can you tell me anything about this?
A. An attorney can prepare you a Quit Claim Deed or a Warranty Deed to put you in Title. You need to check the terms of the mortgage to see if there is a "Due On Sale" clause [generally clause 17]. If there is, then any conveyance [including the Contract for Deed you signed] might cause the mortgage to be in default and face foreclosure. You can't get on the existing mortgage but you might be able to get a refinanced or new mortgage if you have paid long enough on the existing mortgage. Be careful, it sounds as though your parents violated the Fed. law in making this purchase and selling it to you by Contract for Deed.
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