Get Vacant Land Contract - Greater Louisville Association Of Realtors

A Kentucky land contract establishes the terms and conditions of a vacant land purchase agreement between two parties. The terms stipulated on the contract range from financial provisions, such as the agreed-upon purchase price and any monetary contingencies, to the land's legal descriptors as they appear on the deed.

A land contract is typically between two parties: the buyer – sometimes referred to as the vendee – and the seller, also known as the vendor.

Land contract cons. Higher interest rates — Since the seller is taking most of the risk, they may insist on a higher interest rate than a traditional mortgage. Ownership is unclear — The seller retains the property title until the land contract is paid in full.

(b) If the seller fails to record the contract or the memorandum of the contract as required by subsection (a) of this Section, the buyer has the right to rescind the contract until such time as the seller records the contract.

The contract must be signed by all involved parties. A contract must be signed by both parties involved in the purchase and sale of a property to be legally enforceable. All parties signing must be of legal age and must enter into the contract voluntarily, not by force, to be enforceable.

An Illinois land contract documents the binding terms of the purchase and sale of vacant land between two parties. Both the seller and buyer must draft this contract with information regarding the land's legal descriptors as well as the agreed-upon purchase price.