Contract for Reconveyance to Seller, Resale to Third Person,
Contract for Reconveyance to Seller, Resale to Third Person
What is the Contract for Reconveyance to Seller, Resale to Third Person
This Contract for Reconveyance to Seller, Resale to Third Person states that the first party has deeded the land which is described in the contract to the second party. After the deed was given, there were certain conditions which arose as a result it became mutually advantangeous that the property is redeeded to the first party.
In such cases, the second party conveys to the first party a warranty deed and the first party releases the mortgage on the property. The first party also returns to the second party whatever notes the first party has against the second party. These notes are given with the first mortgage and the total amount of the notes is also mentioned.
Also, it is said that as a result of the consideration, the parties will then search for a buyer and they agree upon what the price should be. However, the maximum and minimum limit of the price is to be agreed upon. When the new purchaser is found, the first party pays the second party a sum which is agreed upon by both. This sum is payable without any interest and it is paid only when the property is sold.
The contract not only is binding on the first party but on his or heirs or administrators or if they have representatives, it is binding on them too.
Whatever interest is owed by the second party is cancelled as a result of this as well and this contract continues for the time period agreed by both parties.