Land contract but signed quit claim

[17jacque]

Jurisdiction

Michigan

I'm in Kalamazoo county. I have a 10 year land contract that I signed w another person. What does signing a quit claim deed mean for the one signing it? Is a quit claim even recognized on land contracts?

Thanks.

 

[adjusterjack]

Signing a quitclaim deed means the grantor (owner) is giving up title to the property and will no longer own it. The owner is free to do that regardless of what's happening with the land contract though he would be a damned fool to deed over the property without it being fully paid for unless the deal is being rewritten to a mortgage where he has a security interest in the property.

Now, suppose you tell is what is happening and why the question has come up.

Does this have anything to do with the situation you wrote about in December?

DBA and Business Partner - Can I get my money back?

 

[17jacque]

No. Thats a different situation though involves the same person. :/ Ok...I'll try to explain. I signed a land contract with Dan on a property being sold by...let's call him Bill. Its a 10 year land contract, filed with a title company and the township. I had the previous posted situation happen....I no longer want on this land contract with Dan. What benefit would signing a quit claim deed be for me? Or is it even possible since we're still under contract? Bill's lawyer said I'm financially responsible no matter what....even if I sign a quit claim I'm still responsible for taxes, insurance, payments and if they fall behind, Dan and I am both liable. I want out of this contract so bad before I get screwed over by Dan again. He's not a moral or ethical person come to find out.

Thanks

Signing a quitclaim deed means the grantor (owner) is giving up title to the property and will no longer own it. The owner is free to do that regardless of what's happening with the land contract though he would be a damned fool to deed over the property without it being fully paid for unless the deal is being rewritten to a mortgage where he has a security interest in the property.

Now, suppose you tell is what is happening and why the question has come up.

Does this have anything to do with the situation you wrote about in December?

DBA and Business Partner - Can I get my money back?

 

[army judge]

No. Thats a different situation though involves the same person. :/ Ok...I'll try to explain. I signed a land contract with Dan on a property being sold by...let's call him Bill. Its a 10 year land contract, filed with a title company and the township. I had the previous posted situation happen....I no longer want on this land contract with Dan. What benefit would signing a quit claim deed be for me? Or is it even possible since we're still under contract? Bill's lawyer said I'm financially responsible no matter what....even if I sign a quit claim I'm still responsible for taxes, insurance, payments and if they fall behind, Dan and I am both liable. I want out of this contract so bad before I get screwed over by Dan again. He's not a moral or ethical person come to find out.

Thanks

A quit claim deed is rarely accepted by anyone that knows a thing or two about real estate.

For example, no lender would give a person a mortgage without a warranty deed.

However, if you're on a purchase contract with someone, its hard to just get out of it.

It might be possible to wiggle or wriggle your way free.

If you get the other party to release and absolve your obligations for a fee.

It is always possible to free yourself of ALL legal obligations via a chapter seven bankruptcy, if you otherwise qualify for filing one.

More importantly, never seek legal advice from the lawyer who serves as the lawyer of your opponent.

It can't hurt anything, nor will it usually cost you anything, to ask two local lawyers to evaluate your position.

Why?

Most lawyers will meet with prospective clients once to evaluate and discuss the person's issue(s).

 

[adjusterjack]

Bill's lawyer said I'm financially responsible no matter what....even if I sign a quit claim I'm still responsible for taxes, insurance, payments and if they fall behind, Dan and I am both liable

That's right. It's just like a divorce. You can quitclaim the house to your ex but you are still liable for the contract you have with third parties.

It's a bad idea to give up ownership (or potential ownership) and still retain the financial obligation to somebody else which is exactly what you will be doing if you quitclaim your interest to Dan.

You might want to consider pulling the plug on the property and the business by filing bankruptcy. You'll lose everything you put into both but you won't throw good money after bad. Bankruptcy is a lot cheaper than litigating over this mess.

How did you manage to get into this mess? I'm guessing Dan was a boyfriend. That's how these things usually happen. Then the finances go into the crapper when the relationship goes south.

 

[17jacque]

Actually I've known him for 28 years. He was always sound, level headed, etc. We thought doing a business would Be good idea. Apparently once we started making good money, he thought it was owed to him he get any profit because he's the male. He became where he thought he was entitled to everything with the business. He became abusive verbally and mentally (bc I'm a female I'm not intelligent). One time physically. So, turns out you never really know a person until you do business with them.

So, he's been running the business. Bc frankly, I don't care if we lose this property. He received a forfeiture notice last month for falling behind on payments. Didn't notify me. I got wind of it just a week ago so contacted Phil's lawyer to get a copy. And let them know that I'd rather go thru with forfeiture than continue with land contract. Bc the only way they'll let me out of contract is if it's paid up to date. The owner Phil wants me to stay on the contract. I told him I will not with Dan. If he wants to get rid of Dan, I'd be more than happy to stay on.

Needless to say....you don't really know
Someone until money is involved.

 

[17jacque]

Another thing....Dan wanted me to sign a quit claim, yet never mention it to Bill. Would a quit claim have to be approved by Bill or no?

Just trying to be as informed as possible!

 

[17jacque]

Would filing bankruptcy for business affect my personal property? Also, how can I do that being co-owner of business? Wouldn't Dan have to agree to it to?

 

[army judge]

Would filing bankruptcy for business affect my personal property? Also, how can I do that being co-owner of business? Wouldn't Dan have to agree to it to?

You have issues far too complex and numerous to be resolved on the Internet.
Beyond complexity and great numbers, it's too important to trust to someone not fully knowledgable about all aspects of your life.

At least take a couple hours and chat with three local bankruptcy attorneys, no cost, no obligation, but you'll come away with useful, relevant knowledge upon which you can make deliberate, informed decisions.

 

[adjusterjack]

Dan wanted me to sign a quit claim, yet never mention it to Bill. Would a quit claim have to be approved by Bill or no?

It wouldn't be a matter of Bill approving the quitclaim, you can do that even without Bill's approval. It would be a matter of Bill releasing you from your contractual obligations to him. Even if you signed the quitclaim on the property and Bill released you from your obligations to Bill, you might still have contractual obligations to Dan.

Would filing bankruptcy for business affect my personal property?

Depends on the nature of the business entity but, yes, it could affect your personal property.

how can I do that being co-owner of business? Wouldn't Dan have to agree to it to?

No.

You don't need anybody's permission to file bankruptcy.

I agree with Army Judge's comments. You would be wise to consult bankruptcy attorneys and review your options.