Legal Question in Real Estate Law in Minnesota
default on contract for deed
Simple question: I am the seller in the matter of a contract for deed(CD)for some resort property on lake Mille Lacs. It specifically states in this CD the payment shall be made on the first of the month, with no grace period. I understand that typically there is a 10 day grace period, but our CD specifically states otherwise. Now my question is when can I take legal action for default since it is the 8th of the month and no payment has been made, also what would be my first step. Thank you for your time on this matter.
1 Answer from Attorneys
Re: default on contract for deed
There is a Notice of Cancellation which one serves when a Contract for Deed is in default. It's complicated, hard to do correctly. If it's not done correctly, one has to start all over again. One of my favorite things is to pick up the phone and tell another lawyer what his mistake was and how he has to start all over again.
It's hard enough to get it right after going to law school and practicing law for a few decades. The Notice of Cancellation is not something you should try doing alone.
Usually a small amount for attorney fees can be added to the balance owing when the Notice is served.
If there's no grace period in the contract, you could serve a notice of cancellation when the payment is a day late. Whether you would want to do that is another question. In fact, if I were you I'd give this buyer a little more than eight days.
Good luck.
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