I have a contract for deed on a home in High Point, NC. The contract was never recorded at the local register of deeds and they paid no money down, and only made two payments. The purchaser has not paid anything since March 2014 and is clinging to the property. I have issued a notice of default and that time has elapsed.
The contract for deed has a termination clause which reads "“In the event the Purchaser fails to comply with any term or condition of this Agreement, the Purchaser shall be deemed in default of its terms, conditions and provisions. Upon default of the Purchaser, the Seller may seek to enforce specific performance, seek such other relief as may be provided by applicable laws, or both, or terminate this Agreement and receive the Purchaser’s Deposit as liquidated damages, thereby releasing both parties from this Agreement”.
My attorney told me to send the termination notice (which i did this week) and to state that they are in a month-to-month lease due to the termination of the contract. Does anyone see any issues with this approach? Anyone familiar with a case like this in North Carolina? Thanks ya'll.
Listen to your attorney. I assume eviction is next.
Thanks Wayne. It most definitely is unless he fights me with NC foreclosure law. I don't think this is his first (or second) contract for deed....
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