Contract for Deed Sale
I sold a 40 acre parcel under a contract for deed. The buyer of this 40 acres now is selling 20 acres of it to a third party. We both agree that the proceeds of this 20 acre sale will go to me. I still have the warranty deed for the 40 acres. How is this transfer accomplished? Do I sign the warranty deed to this third party? Does the original buyer quit claim his interest? Thanks.
Re: Contract for Deed Sale
Most constracts for deed contain a clause that says no transfers can be made without the seller’s consent. So you probably could block the transaction if you wanted to.
Assuming you want to go ahead with the deal, you are in the driver’s seat. You can handle it almost any way you want. Yes, you could give this buyer a warranty deed and have your original buyer give the new buyer a quit claim deed. You could also sell on a contract for deed if the new buyer doesn’t have cash to pay the whole purchase price.
One thing I would say you for sure want to do is amend the original contract for deed to provide that you are now selling the remaining 20 acres only.
Another thing I would do if I were you would be to check with the city clerk or town clerk, and also with the zoning authority of the county, and make sure that this subdivision of the land does not violate any local ordinances or zoning regulations. There might be an ordinance which requires a permit of some sort before you can subdivide.
Good luck.
This response is for general information purposes only and does not create an attorney-client relationship. You are advised to seek the advice of an attorney of your choice concerning the details of your case.
David Kelly-952-544-6356
Kelly Law Office
10709 Wayzata Blvd. #205
Minnetonka, MN 55305