Land Contract Gone Bad

[stumped]

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

My mother inherited a house after the death of my grandmother. My mother did not need this house and it needed alot of work which she could not afford to do. She decided to sell the house AS IS on a land contract. After a buyer was found the contract was made through a lawyer and both parties signed. Down payment was made and first payment was due 2 months later. This is where is goes BAD. Before the first payment was due the house caught fire. Buyer did not purchase insurance. The buyer left the house that day and has not contacted anyone or tried to make it right. Payment is now 60 days late. House is not liveable. What can be done?

[lwpat]

First you need to see who bore the risk of loss. This should be in the contract. The attorney should have advised your mother about insurance and included the provision in the contract. If not, you may have a very good case against the attorney since I doubt you can collect against the buyer. The way to start is to file a complaint with the state bar.

Typically there will be a requirement that the buyer purchase insurance with the seller as a named insured under a standard mortgage clause.

[stumped]

Okay my mom talked to her lawyer and the lawyer is wanting my mom(seller) to sign a release of contract. Which would return the house to mom(seller) and let buyer out of contract. Which means buyer would be getting of the hook for all this. Why would lawyer suggest this to my mom(seller)? and Why would the lawyer not want to pursue the buyer since the buyer is in default and responsible? The contract states that if buyer goes into default that the amount owed becomes due and the house is to be returned to seller in as good of shape as it was when buyer signed contract. He is not paying and the house obviously is not in the shape it was when buyer signed contract because of fire damage. Buyer is also the one that did not purchase insurance so why would my mom have to bear the weight of all this? Should the lawyer have advised or made sure the buyer did purchase insurance? Also; now the township that house is in, is now sending citations to my mom(seller). So another question who is responsible for the upkeep on the house the buyer who is in default or the seller? So many questions. SO confused

[gigirle]

Unless we have the contract to look at we can't tell you who is responsible for what. You have very valid logical questions that should be addessed.

I suggest that mom takes the contract to another attorney for review. This way someone impartial can help her figure out what her rights are and who was at fault where. I would also advise that she not sign anything until someone can help her figure out what it going on.