QUESTION
Do I have to pay off a owners contract if the holder dies
Asked on Feb 17th, 2012 on Real Estate - Idaho
More details to this question:
I bought a house from my mother on a owners contract. Now my mother is 87 years old and my sibling are saying that when she dies I will have to pay off the contract. The contract say that I am to make the payment the it is paid in full. The contract say nothing about a balloon payment if she were to dye
1 ANSWER
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Death of the party owed the money does not change the terms of the contract, it simply means that the payments will go to the estate instead of to your mother. So I agree with you that if there is no provision in the contract for a balloon payment upon death, I don't believe there is one. There may be more facts or details to this that you have not included in your question that could change this conclusion, perhaps an understanding by all parties that you were to pay it off in full if your mother died? Otherwise, it appears that you understanding of the situation is correct.
Answered on Feb 21st, 2012 at 1:50 PM