Expert: Matt Heisler - 3/19/2008

Question
Hi
We have 120 acres in MN that we bought contract for deed. I am wanting to sell it and we still owe about 18,000.00 on it. I have people interested in it but they want to buy it contract for deed. with 10% down and a 5 yr contract at 6.5%. I have looked at our contract and I can only find one section that may be pertaining to selling the property. It states " Notice of assignment Stating that if either the seller or purchaser assigns their interest in the property that they furnish a copy to the non-assigning party  " The only reason I am in a hurry to sell it is I need the money so what are some of the options that I could go forward on. Does it really matter if I sell it as long as the person I bought it from still gets his payments. I am hoping to sell our other house in the next few months as well and would pay the MN land off at that point. Any advice is appreciated.

Answer
Hello-

I'm not licensed in MN, but I'm sure it works pretty much the same way.  You can not sell land without producing "clear title" which means that it must be free of encumbrances, including liens.  (Liens is a fancy word for loans or mortgages or other payments).  Your contract may be different, but ultimately, you I suspect you won't be able to sell it without clear title.  A real estate attorney or title person is the best person to ask, you should get some representation and save your self some headaches (at best) and a lawsuit (at worst).

Matt Heisler