Legal Question in Real Estate Law in Kansas
Can an owner financed mortgage, written on a standard real estate contract, demand the monthly checks at the begining of the year and hold them to be deposited on the 1st of each month? It was stated in the contract that payments were due on the 1st with a 10 day grace period.
1 Answer from Attorneys
If the parties agree to it, almmost anything is possible. But, as courts don't really recognize post dated checks, your proposal seems to alter the contract to have one annual payment made by 12 checks. That is not the same as payment is due on the first of each month.
It would be tough for you to enforce such a provision. If the contract says payment is due on the first day of each month, but then later says all payments are due in the first month, there would be an ambiguity for the court to resolve. If you drafted the agreement, then generally courts would resolve the question in the way most favorable to the other party.
I have not done any research specific to your question. But, I believe your proposal would not be upheld in court. If you seek a more definite answer, you should hire an attorney to research the issue. Perhaps there is a case out there, where a court has decided this very issue.
Good luck