Legal Question in Real Estate Law in Kentucky

Liens on Property being bought on LandContract

We are buying property on a land contract. We were served a summons by a bank demanding relief because the guy we are buying it from fell behind on payments and they say since we ahve an interest in it we are being sued also. We had no idea when we signed the contract that there is 5 liens against this property. The lawyer that prepared the land contract said that they do not do title searches on land contracts. We have 20 days to answer this summons and we don't have $500.00 to hire a lawyer. Can we file an answer ourselves and how do we write one? We would like to keep purchasing the property but 2 banks,the U.S Dept of Education,The State of Ky.,The County and us all have an interest in it. Does this sound like a hopeless cause and what can we do ourselves to get this straightened out?wereceived the summons on the 18th. Any help will be greatly appreciated.


Asked on 12/25/01, 4:46 pm

1 Answer from Attorneys
Philip Owens Philip M. Owens, Attorney at Law

Re: Liens on Property being bought on LandContract

(1) title examinations take quite a bit of time and will cost several hundred dollars, so no title examiniations are conducted unless requested and they should be requested when puchasing property. (2) Always ask why a person is using a land contract instead of a deed and taking a mortgage back. (3) You buy the property subject to all prior recorded liens, etc. (4) In Kentucky, most courts will treat a letter as a response but a copy MUST be sent to the attorney for each party or to the party if he has no attorney listed. The original of the answer MUST be filed in the circuit clerk's office of the appropriate court. That information should be on the summons. (5) your interest is the amount of money that you have in the place and that must be set out in your answer. (6) You need to find out the total of what is owed because that is what it is going to take (in most cases) to satisfy the senior lien holders. YOU are the LAST in line. (7) As a strategy, you may want to bid this property in at the Master Commissioner's auction because this is where this action is heading unless your seller pays everyone off. (9) be sure to assert a cross-claim against your seller to reimburse your money. MORAL: ALWAYS GET A TITLE OPINION!!!

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Answered on 12/26/01, 6:06 pm


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