Legal Question in Real Estate Law in Wisconsin
Unrecorded Land Contract/Foreclosure
I entered into a land contract with 'buyers' in 2007. We nenewed the land contract in 2008 and they stopped paying in February of this year. The land contract was never perfected or recorded. There was no transfer of deed or title. I am still on title and the property taxes on the property come to me, in my name. Due to the 'buyers' situation (credit score, employment) there is no possible way they would have ever been able to purchase out the land contract. The husband has abondoned the property and moved out. The wife is staying there arguing I have to go through strict foreclosure proceedings to get her out. I decided to treat the property and contract like a rental since it was never recorded and no transfer ever took place. The court commissioner ordered eviction but she applied for and recieved a stay of that order to have a hearing about the nature of the agreement and the strict foreclosure claim. I am in danger of having the property go into foreclosure myself because I can't make the payments on that property without getting their payment which I have not been getting. I need her out ASAP. Am I going to have a problem with the land contract nature of the agreement even thoguh there was never a transfer?
2 Answers from Attorneys
Re: Unrecorded Land Contract/Foreclosure
A land contract need not be recorded to be enforceable. You should contact an attorney to review your documentation and to weigh your options. If there is an enforceable land contract, the buyer generally has the right to occupy the property until the foreclosure and redemption process is complete.
This is not intended to and does not provide legal advice. Rather, we only offer general feedback which may not be applicable depending upon the totality of the facts. Please contact us directly if you have specific questions or concerns. http://www.Grahamlaw.biz
Parties in Possession Under Unrecorded Land Contract/Foreclosure
Under WI caselaw, parties in possession under unrecorded land contract are perfected, since their physical presence on the premises places the world on notice of their interest in a manner similar to recording with the register of deeds. Foreclosure or at least judicial forfeiture under the land contract might be the only way to end their interest unless a negotiated settlement is possible. Of course, simple eviction is not an available remedy when someone such as a land contract vendee actually owns a property or at least has a right which is superior to that of the land contract vendor (until foreclosed). For these reasons, leases with options to buy and land contracts are risky propositions for landlords, as they can make it far more difficult to evict a tenant who is not paying. These comments are not intended as legal advice; please therefore contact me directly if you have specific questions or concerns.
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