I live in Illinois buying a farm with house on contract for deed. Contract was signed by me and now ex-wife ten years ago. At time of divorce(6 years ago) she sign a quit claim to be kept with the contract at the bank. I am now remarried, contract was moved to a new bank by the sellers this year. My wife would like a new contract made, so that if anything happens to me, she doesn't lose the farm. What are my options and risk exposure.
2 Answers from Attorneys
I would suggest that you hire a real estate attorney to assist you with this. There are numerous ways to handle this situation, including the quit claim deed that you say is being "kept" by the bank.
I agree. Among other things I'd want to know whether the installment sale agreement was recorded or not (which may explain why the quitclaim deed has not been held and not recorded), whether there is another quitclaim deed also held that could be used to undo the contract if you forfeit, etc., whether the new wife could be substituted....and af the "final" closing who was supposed to get the deed of conveyance (and whether after that there was still a balance owed to become a real mortgage...). It would require a review of the installment sale agreement and initial closing documents, so see how these and any other relevant matters can be adjusted. If there are children involved this can get even more complicated because of inheritance issues.