If I am buying land from a private party, can he still sue me for anythingif I defaultbut give him back the land?

UPDATED: Sep 6, 2011

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If I am buying land from a private party, can he still sue me for anythingif I defaultbut give him back the land?

I am buying land from a private party. The contract states if I default he can reposes the land and all improvements into the land. If I decide to default and walk away from the property, allowing him to repossess the land in contract, then buy another property from someone else and pay for it completely. can the person I defaulted on sue me and take the owned property away from me?

Asked on September 6, 2011 under Real Estate Law, Alabama


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the property you are buying is "purchase money" containing a residence upon it that you intend to use as your personal home and if your state has anti-deficiency statutes on purchase money loans (seller carry back in your case) and if you default on the loan from the private party, then most likely the seller's sole recourse against you is to foreclose upon the sold property and nothing more. There would be no deficiency judgment.

To be on the safe side, your purchase agreement with the seller should clearly state that the seller's recourse against you is soley the security in the sold property and nothing more.

Before you close the sale, you should consult with an experienced real estate attorney to make sure your interests are protected.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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