A entered into an agreement of sale with B wherein A agreed to purchase certain real estate. Among other items in the agreement, B specifically agreed to convey "marketable title" to A. The title inspection ordered by A revealed numerous liens against the real estate, including tax liens and judgment liens.
A land installment contract, also known as a contract for deed, is a financing mechanism where title to real property remains in the seller until the buyer has paid the sale price of the property in full. The buyer is required to pay the sale price in installments over a period of years.
An owner of real estate has the right to use the realty for any purpose and in any way that does not conflict with local statutes, ordinances, and zoning laws and any restrictive covenants. As long as the owner complies with those restrictions, the owner has the right to sell the property, to give it away by gift or by will, to exchange it, and to exclude others.
For sale!
In the year 1980, Congress enacted the Foreign Investment in Real Property Tax Act (FIRPTA). The law can be found at 26 U.S.C.S. § 1445. Briefly stated, the law provides that if a seller of real property is a "foreign person," the buyer must withhold a tax equal to 10% of the gross purchase price, unless an exemption applies under the law.
