Legal Question in Real Estate Law in Pennsylvania

If I understand you correctly, you are buying the property from a relative. You are signing a note obligating you to pay the $20,000 to your relative. The terms you describe are commonly referred to as an installment sale agreement. Since you are actually buying the property and, in effect, giving a mortgage to your relative to secure your obligation, the relative should give you the deed now, you sign a note and a mortgage, and the deed and mortgage should be recorded now.

You should also have title insurance on the purchase, even though you are buying from a relative, to make sure that there are no liens against the property and to make sure that you will be protected against any claims relating back to before your purchase.

This would take care of the questions you ask about death, incompetence, and refusal to honor the agreement.

You should also have a local real estate lawyer represent you to make sure that your interests are protected.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.