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

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.


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