Land Contract Add Comments For Free

How to Write a Land Contract AgreementNegotiate the basic terms.State the purpose of the contract and the identity of the parties on the first page.Identify the property using its legal description.State the amount of the down payment if any.More items...

Because there's no bank involved, land contract closings can happen in under a weekand without expensive closing costs. Buyers with poor or no credit can get a land contract because it's up to the seller to decide if they're creditworthy.

Setting up a basic land contract is fairly simple if both the buyer and seller agree on the terms of the sale and financing. Agree upon a sale price. Before you begin structuring the land contract, meet with the buyer and agree upon a sale price if you have not done so.

A land contract is often viewed as a way to "pay down the purchase price" before obtaining a regular mortgage to buy the property outright. Often, the terms of the contract will call for 5-10 years of regular payments, concluding with a balloon payment for the balance of the mortgage.

Land contract payments aren't reported on your credit, so your lender will require other payment verification through canceled checks or bank statements, etc. It depends on the type of loan you get and whether your land contract was with a bank or an individual, but a good guideline is 24 months of payment history.

At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required.

A land contract should spell out the purchase price, down payment, payment schedule, installment amount, interest rate, loan term and balloon payment amount, if applicable. Responsible party for home repairs. The buyer and seller agree upfront on who will make and pay for home repairs.