Legal Question in Real Estate Law in Texas

Contract for Deed

I have lived here for 2 years, I am purchasing this property and will have no equity until it is paid for, I recently sent in my payment ( which covers land note,taxes and insurance) the contract states that an additional $25.00 monthly will be charged seperately for water. I have gotten behind on the water,and received notice that my payment was being applied to the water, and that I am now in arrears on the regular payment because of this. Can my payment be applied to the water?? I was under the impression that they could only turn off the water, and now they are trying to have me vacate for nonpayment of the monthly property payment. I wrote on the money order each time that it was land payment. The water is for 2 months @ $25.00 monthly, yet has increased drastically due to them charging 10% daily interest on the water, my contract does not say anything about interest or charges on the water. Please help if you can. Thank You for your time.


Asked on 7/17/02, 11:19 am

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Contract for Deed

You have to read the contract to determine how the owner is entitled to apply the payments. Contract for Deeds can be very dangerous. Unless they are recorded the owner could sell the property out from under you even though you are making payments. It is unusual that you would be billed for water through the contract, unless somehow the owner owns the water system. If you are being charged interest at 10% per day that is usury and may entitld you to damages from the owner. Hope this helps. Larry Maun 713.266.2560

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Answered on 7/17/02, 2:48 pm


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