| DATE: |
10/23/08 |
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|---|---|---|---|---|
| SUBJECT/TOPIC: |
CONTRACTS FOR DEED |
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| Q: | Just had a question regarding contracts for deed. My client entered into an agreement where they made payments for 12 months and were required to pay the total balance by refinancing. Upon payment in full, the deed would be delivered. The contract was recorded and a fully executed warranty deed was held in escrow by the title company. Upon a breach by the buyer, does the seller have to foreclose to take possession? Any statute or case law that you are aware of would be a great help. |
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| A: | Tennessee has cases both ways. Take a look at Freeland v. Harris, 35 Tenn. 264 (1855), Knapp v. Robbins Properties, 11 TAM 6-7 (Tenn. App., Dec. 31, 1985) and 77 Am. Jur. 2d, Vendor and Purchaser section 421. They support the position that the arrangement should be treated as a mortgage. But Kafozi v. Windward Cove, 30 TAM 43-10 (Tenn. App., Aug. 26, 2005) goes the other way. Good luck.
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