I have a house for sale and buyer wants Land Contract. What are the pros and cons of a Land Contract?
104830
Land contracts vary widely from transaction to transaction. It depends on the seller on what they'll let you do since it is their name on the mortgage \nIn most cases, no grant deed is recorded. The buyer rarely obtains a new mortgage loan at the time of purchase. Instead, the new owner makes payments to an intermediary, (usually the seller) who then makes payments on the Sellerss mortgage, which is still in place.\nKeep in mind that such an agreement usually violates the lender's guidelines. If the lender becomes aware of a transfer of title on the property (which is why you usually don't record the grant deed & the seller holds the title), they can exercise the "due on sale" clause of the note.  This would require you to refinance the loan or sell the property.  Since many who buy on land contracts have problems qualifying for a mortgage, you can see how this can lead to problems.\nAt the same time, lenders generally only check for transfers of  title if the loan becomes delinquent.\nWithin a certain number of years, it is expected the buyer will be able to qualify for a loan.  At that time, they will obtain a new mortgage and pay off whatever amount the land contract requires. Then a grant deed is recorded and full ownership is conveyed.\nKeep in mind that Because income from the sale of land is taxed as ordinary income, many sellers prefer receiving payment in installments through a land contract instead of receiving payment in a lump sum.\nMake you sure perform a credit check on the buyer and if you don't feel comfortable with the outcome then consider a lease option. This way the buyer can exercise the option when he/she is better off and more able to pay. This will make it a lot easier to get them out if they don't pay. It will be harder for you to remove the occuipants out of a land contract. More than likely it'll involve court proceedings.\nThe pros and cons vary from situation to situation.It wouldn't hurt to consult with a real estate attorney on this matter. Hope ths helps
1163039
Depending on the area that you live in, you can go into a real estate office and explain that you are looking at investing. Speak with friends and family members who you really trust because they maybe able to refer you to someone. They can give you some insight. Also when speaking with a realtor make for sure that they take the time to explain to you EVERYTHING. Once you sign the contract , there is no changing your mind. It is always good to speak with someone who has had many years in this field. There are so many people who have built homes and are turning around and selling them but, aren't experts in the field of real estate. That is only one area of it. Good luck and I hope that this helps
580951
It is riskier for both... both parties are getting into a legal contract without the help of a professional. the seller risks not getting a good price among other things. the buy risks getting into something they cannot get out of, ie stuck with a crappy house they paid to much for. many agents will work with a buyer on a FSBO if the buyer goes through the agent befor seeing the house or if you have one that will work for a flat fee that is good to. good luck, i hope it all works out for you!
15294
The most important factor is how the property is priced. Even the worst property will sell if it is priced right. At the right price you may have buyers competing against each other to buy your home.\n\nMake sure your home is clean,neat, and free of any odors. You only get one chance to make a good impression on a buyer.\n\nMost homes that meet the above criteria will go under contract within 45-90 days and then close (if there are no other issues)about 2 weeks after getting a loan commitment from the buyers lender.
929082
The answer is No!. The contract can only be binding when it is exchanged. If you are having doubts and no longer prepared to purchase the property. Instruct your solicitors immediately not to exchange. You might however still neet to meet part of your solicitors cost for the work he/she might have done so far.
834261
A contract -for-deed is similar to renting, so your mother-in-law can ask for whatever payments she wants. There is no legal basis for her to say the payments will increase. Perhaps she is including the cost of taxes & insurance in the new payment, or perhaps she is charging a high interest rate.\n\nThe only advantage to you, in a contract-for-deed, is that after 12 months of on-time payments (verified by canceled checks) you can refinance the loan with a conventional mortgage.\n\nRick\nwww.fairwaymortgagelending.com
172375
It's a good idea if you do some of the "heavy lifting" yourself.  You need to get an appraisal of your house so that you price it right.  You need to prepare a listing sheet so that you can show the prospective buyers all the features of your house.  Order a survey in advance.  You'll need to to establish no encroachments as well as your exact boundaries.  You'll want a form of contract available so that prospective buyers can sign something.  Your lawyer could serve as escrowee for the earnest money and probably act as or arrange for a closing agent.  You'll need to screen out brokers fishing for a listing as well as people who are not really interested in buying.\n\nNot to discourage you but brokers do have a legitimate function.  Whether that function is worth 5-6% of your sales price, especially in this era of very high real estate values, is another question.
149683
What you are required to come up with is a Purchase and Sales agreement for you and the buyer to sign.  It will spell out how much you have agreed to sell the house for and other terms such as:\n\n1. The house is to be sold in "as is" condition\n2. What appliances to be sold with the house\n3. The type of financing the buyer is going for\n4. etc.\n\nYou can find this document at any Office Supply Store like Office Depot or Staples. Make copies for yourself and the buyer.\n\nThey buyer will take that document to the Mortgage Broker who will work on financing and either you, the buyer, or the mortgage broker will then choose a Title Company to handle all the other legal stuff.
1074653
A land contract is simply a contract, (on paper), (there are pre-printed contracts available in any decent stationery section of bookstores), between you and the seller of the land in question.  It will have to stipulate the terms, payment, percent of interest, payment dates, late fee penalties, early payment penalties, or no early payment penalties, etc.   The pre-printed forms are legal in most states, it will have to be Notarized, (witnessed by a licensed Notary Public), and signed by them.   The contract will also have to state the discription of the land parcel.
714629
Two issues. One is what the deeds say. The other is a concept called adverse possession.\n\nAdverse possession says that if you claim land for a long period of time (10-20 years), and actually use, then you get to keep it. It's more complicated than that in practice, but that's the idea.\n\nThe issue will get decided by a court. If you care about the seven feet, then you should consult with an attorney. She'll probably recommend filing what is called a "Quiet Title" action. That asks the court to settle any issues regarding property ownership.
1056913
You can easily terminate the agreement.  Check your contract for your liability for any expenses though.  But, after a week, the realtor probably hasn't done much more than put a sign in your yard and listed it in the MLS.  Hopefully he's not a short-sighted realtor, shouln't charge you a dime especially because your circumstances have changed.  Now, if you were switching to another realtor........that's a whole 'nother story.
908052
Good  luck, unlike the others here, I am not oppose to owners selling their own property.\n\nAs far as the documents you will need, you may draw up a contract on anypaper you have available.  The important items you need to have on this document is a date, the total sell price of the property, how much if anything the buyers are putting down on the property. After you do this the remaining amount left now is the amount of  money they will be required to borrow to complete the process.  You need to put a date down in which you would like to close this transaction. Allow enough time for the buyers to qualify and get a loan.  You might or might not close on this date. Not to worry very seldom do real estate transactions close on the date we would like.\n\nYou should also put in this contract who will pay closing cost, which is normally divided between the seller and buyer, though there are times when the seller might pay this. This is a not a huge amount of cash, check with the closing agent when you secure one about the closing cost and how much they are.\n \nNow you should call an escrow closing agent, some states use lawyers. Take your contract, that is signed by all parties to the transaction both husbands and wifes and anyone else involved in the transaction., to this excrow closing agent. If you are in an escrow state, call a title company, they will do all the legal work that needs to be done. You will find a title company in your local telephone book. All do the same work and are about equal so just select one.\n\nThe buyers or yourself should now contact a "Mortgage Broker" to secure a loan to pay for the portion that left after the down payment.  Their mortgage broker will set up an appraisal of the property with an appraisal that they are accustom to using.\n\nThere will be other things required of you as well as the buyer so be prepared for the long haul, just keep in mind you are now dealing with the experts of the business when you get a title company,mortgage broker,closing agent. They are not gonna do anything to lose their license.\n\nIf the buyer want to hire a house inspector let them do so. Make sure that you tell them of any items you know that need repairing,make a deal with them to get this done, sometimes this will require you to accept a lower sales price in ordere to accomudate the buyer, do so and move on.\n\nI admire you for doing this transaction on your own there are no deep dark secrets to selling your home.  The only ones that holla about people selling their homes themselves are the ones that are losing the sale commission.\n\nIf you have any questions ask them of the mortgage broker, escrow closing agent or the title company, they will assist you in the closing and insure that things are done according to federal  state laws.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
1046285
If the contract shows in writing that he is buying it for 2.4M and the appraisal show the same, messing with legalities with the sellers and their not wanting the full amount mentioned.....it is a messy legal problem.  If it is in writing for 2.4 then 2.4 it will be, not 1.3M, who cares?  Not the bank, not the buyer if the seller is willing to sell for 1.3M.  Then 1.3M should be on the contract not 2.4M   You can't put anything on paper where it shows over and above what both the buyer and seller are going to want to settle for.  It sounds real messy to me. Could have some problems down the road if anything goes wrong.  Who knows WHAT might go wrong but there is nearly 1M at stake here!  I'd try hard to not fudge with the paperwork it could fall back on you too!  And who is this "buddy" to say what he should or shouldn't do when there is a million dollars at stake.  I'm sure if the buddy was in his shoes he'd be wary too.  Check it all out OK?  Don't jump into anything, it seems everyone is wheeling and dealing "off the books" and that is crazy-a million dollars difference? I wouldn't get involved even if it might mean a nice commission.  Are you working for yourself or a Real Estate company.  Will the Real Estate Company want this type of activity going on in all the paperwork? I doubt it, sorry.
871121
You should be fine.\nAll contracts regarding real estate are generally covered by "statute of frauds". The statute requires certain contracts to be in writing, in particular all contracts about real estate must be in writing.\n\nGoogle your states statutes, find the statute of frauds, when you go to court tell the judge that the statute of frauds applies to claim making the contract invalid.
691723
1.  Contact local real estate agents.\n2.  Advertise in the classifieds.\n\nBe careful.  If you miss a payment, the owner of the property can evict you and keep all the money you have paid them.  Traditionally, contract for deed sellers have victiimized poor persons by offering them land very cheap through a contract for deed.  The poor person, usualy an immigrant, "buys" through a contract for deed and builds a house on the property.  If the buyer misses one payment or is late, the seller evicts and the sell resells the house and land to someone else for more money.  Since the buyer doesn't actually own the property in a contract for deed sale, it is actually like renting to buy.\n\nThese types of sales have been used to victimize immigrants in South Texas.
993022
The statute of frauds says that a contract regarding the sale of land must be in writing to be enforceable.  That means that a verbal agreement is useless if one party or the other wants to not go through with it,  but would be enough if both parties wanted to. \nSo, there is no contract to enforce. The only thing you could do is go to court to get damages for the money you spent in reasonable anticipation of this contract happening, but you might not get that.
75266
Depends largely on the state in which this is happening.  In Texas, our real estate contracts spell out that you can lose your earnest money AND be sued for specific performance.  The specific performance on our contract refer to any party backing out, not just the seller.\n\nBear in mind there are things that you can do to get an 'out', but usually these involve option periods, time to finance, etc.\n\nEmail me if you have any further questions.