Land Contract Combine For Free

Writing a real estate purchase agreement.Identify the address of the property being purchased, including all required legal descriptions.Identify the names and addresses of both the buyer and the seller.Detail the price of the property and the terms of the purchase.Set the closing date and closing costs.More items...

The main advantage of a land contract is that it's fairly easy to qualify for. As long as the seller is willing to go that route, there's little need for extensive credit checks.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.

Most of the disadvantages of land contracts for buyers of property stem from the fact that the vendee (buyer) does not receive the deed to the property at closing. The vendee obtains equitable title, but the vendor (seller) retains legal title. This situation usually exists until the land contract is paid in full.

Here are some of the risks: The seller retains the right to the property until you pay in full, no matter how much money you put into it. If you miss any payments, the seller can quickly cancel the contract and keep every cent you've paid (state laws vary on how this goes down)

On the flip side, a land contract is the sale of a property, where the seller finances the deal.In addition, there is no obligation to buy the property in a lease-to-own arrangement. As such, depending on the specifics of the agreement, the lessor can walk away if they are unsatisfied with the property.

Generally, the seller carries the loan for a fixed number of years, at which time a balloon payment is due.Pro: Financing.Pro: Win-Win For Seller.Pro: A Sales Tool In A Tough Market.Con: Buyer Depends On Seller.Con: Contract Mistakes.Con: The Buyer Could Feel Like The Owner.

Common law remedies - damages A party who has breached a contract for the sale of land is liable to pay at least nominal damages, even if no loss has been caused.