Land Contract and Quitclaim Deed

[Dru79]

My question involves real estate located in the State of: Ohio

Does a quitclaim deed void the obligations of a land contract?

We tried selling property on a land contract, but the buyers defaulted and now we're trying to get them to pay us for some damages and remaining mortgage balances, which are all outlined clearly in the contract. We're having issues now trying to get them to pay their obligations, and are considering small claims court. We had them sign a quitclaim deed to remove their interest from the property so we could put it back on the market for sale, and I was wondering if by having them sign the quitclaim deed, if that freed them of their obligations of the contract.

[Mr. Knowitall]

If all they did was quit claim the property back to you, with no other agreement or release of any sort, then that act alone should not affect any amount they still owe dating back to when the land contract remained in effect.

[Wendell Zuchs]

It was in effect as long as the contract is not expired yet.

[mdindestin]

Attorneys here in Florida place language in the deed signed by the borrower in default that states essentially that there is no merger of the lien and fee simple conveyance and the debt still exists. Since you didn't mention that your QC has that language you would be subject to the commone law interpreation by the Ohio courts on this issue - assuming there is no applicable state statute.

You got the property back without having to foreclose. If you can sell the property for around the former mortgage balance you've done a lot better than most professional lenders.