	What Is A Land Contract? A Land Contract is a binding legal agreement, between the current land owner (Seller), and the interested purchaser (Buyer). It has also been called and a Contract For Deed or Installment Land Sales Agreement. Title is transferred when the full terms of the Land Contract have been satisfied. The ownership title stays with the land seller, till the final payment has been made by the buyer. When the terms of the Land Contract have been meet, it is the responsibility of the land seller to give the Buyer, title to the new owner and record or deliver the Deed in favor of the buyer, named in the land contract. The Land Contract, is sometimes called an Installment Land Contract, because the monthly payments are made to the land seller, in monthly installments, till the full amount has been paid off. Selling With A Land Contract Selling with Land Contract offers the land owner another option to offer owner financing to a perspective buyer, without the need of using a bank or other financial institution. There are several benefits to the land seller using this type of sales transaction. Probably the most important reason, is that you can sell your land with a minimal down payment, allowing the property buyer to purchase your land, without having to put up a huge down payment. Also in a slow economy, recession, or down real estate market, this provides a new avenue to offer your interested buyers. Ownership is maintained by the original owner, till the loan is paid in full, and the land contract has been satisfied. With a standard mortgage or trust deed, a judicial foreclosure may be necessary especially if a defaulting buyer decides not forfeit title via a Quit Claim Deed for you to record, and transfer title back to you. The need to do a judicial foreclosure is not necessary if your land buyer defaults with the Land Contract. Eliminating this alone can save you upwards of several thousand dollars, considering your profit margin may be less than this. To use the land contract, you will need the property legal description, usually from your grant deed, that is available from the County Recorders Office, in the County your property is located in. You may already have a copy in your files. A copy may also be attained from a local escrow or title company. When selling your land, you will need to give the terms of the loan. This includes how much the interest rate will be. You will need to determine how many months you are willing to offer financing for the purchase. This means you will be required to maintain records of the monthly payments made to you by the new buyer. Detailed record keeping is a must. There are several ways to do this. One is to get the amortization schedule, for your loan, and print it out, and mark off the monthly payments, with the buyers check number. Record keeping is also necessary for the property taxes for that parcel. It is your responsibility to make sure the property taxes have been paid, and paid on time to avoid penalties from the County Tax Collector. Once the loan has been satisfied, and the full amount has been paid, you will need to have the Deed drafted, and have it Recorded, at the County Recorders Office, in which the property is situated in. Here are a few sample deeds. You can also get some blank forms from your local Title Company. Just call and ask for the customer service department, and what type of deed you are looking for. If you are not sure, and would feel more comfortable about having this done professionally, you can hire a local escrow company to do this for you, along with the recording, for a minimal fee. If your County normally uses an attorney, to handle escrow transactions, you can contact a local Real Estate Attorney office, and have their legal secretary draft one up for you, also at a minimal fee. Be responsible, when selling your property with a land contract, keep detailed records of all money received, and spent. You are liable for what you sell, and these records are necessary if a dispute arises. Buying With A Land Contract Buying with a Land Contract, and what to look for. If you find a land owner willing to sell and offer to do owner financing, they may be offering to do it with a Land Contract. Accepting monthly payments over a given time frame, may provide you an opportunity to start investing in land, for a little amount of money down. Not every land seller is willing to wait, 5, 10 or even 30 years for their money, but some land sellers, may find this an opportunity to sell in a slow market, with difficult lending opportunities. What to look for from the land seller offering the Land Contract. - Is the seller the true legal owner. A quick call to your local title company can give you the correct answer. - It is a good idea to check the property records with the County Assessors Office to see who and where the taxes are being billed to, and if the owners names match who is selling the property, and offering the land contract. - Are there outstanding liens, open Deeds of Trust(s), Mortgage(s) or any other issues that may effect the title of the land your considering purchasing. - If there are, it is your responsibility to due the research, and ask these questions before sighing or paying anything. - Be familiar with the Land Contract, and wording in it. Ask that the seller provide a copy, or where they purchased it from. All land contracts are not the same. Be informed, what is being offered. - A Standard Agreement Of Sale Land Contract Form, is available on this site, that can be modified to each individual sales transaction. It is advised that you get a copy, read it, learn, and be familiar the terminology, and way one is drafted. This will give you an idea of what a eagle form looks like, when presented with the land sellers contract. Talk with the land seller, and ask if there are any pre-payment penalties. If you want to payoff the remaining balance early, most land sellers are willing to waive any pre-payment penalties. Ask the seller if you happen to be late with a payment, ask the seller how much is the late fee, and after what date does that kick in. Keep detailed records of your monthly payments. Asking question, and being informed is the key to investing wisely. How to Use A Land Contract

What Is A Land Contract?

A Land Contract is a binding legal agreement, between the current land owner (Seller), and the interested purchaser (Buyer). It has also been called and a Contract For Deed or Installment Land Sales Agreement.

Title is transferred when the full terms of the Land Contract have been satisfied. The ownership title stays with the land seller, till the final payment has been made by the buyer. When the terms of the Land Contract have been meet, it is the responsibility of the land seller to give the Buyer, title to the new owner and record or deliver the Deed in favor of the buyer, named in the land contract.

The Land Contract, is sometimes called an Installment Land Contract, because the monthly payments are made to the land seller, in monthly installments, till the full amount has been paid off.

Selling With A Land Contract

Selling with Land Contract offers the land owner another option to offer owner financing to a perspective buyer, without the need of using a bank or other financial institution. There are several benefits to the land seller using this type of sales transaction.

Probably the most important reason, is that you can sell your land with a minimal down payment, allowing the property buyer to purchase your land, without having to put up a huge down payment. Also in a slow economy, recession, or down real estate market, this provides a new avenue to offer your interested buyers. Ownership is maintained by the original owner, till the loan is paid in full, and the land contract has been satisfied. With a standard mortgage or trust deed, a judicial foreclosure may be necessary especially if a defaulting buyer decides not forfeit title via a Quit Claim Deed for you to record, and transfer title back to you. The need to do a judicial foreclosure is not necessary if your land buyer defaults with the Land Contract. Eliminating this alone can save you upwards of several thousand dollars, considering your profit margin may be less than this.
To use the land contract, you will need the property legal description, usually from your grant deed, that is available from the County Recorders Office, in the County your property is located in. You may already have a copy in your files. A copy may also be attained from a local escrow or title company. When selling your land, you will need to give the terms of the loan. This includes how much the interest rate will be. You will need to determine how many months you are willing to offer financing for the purchase. This means you will be required to maintain records of the monthly payments made to you by the new buyer. Detailed record keeping is a must. There are several ways to do this. One is to get the amortization schedule, for your loan, and print it out, and mark off the monthly payments, with the buyers check number. Record keeping is also necessary for the property taxes for that parcel. It is your responsibility to make sure the property taxes have been paid, and paid on time to avoid penalties from the County Tax Collector.

Once the loan has been satisfied, and the full amount has been paid, you will need to have the Deed drafted, and have it Recorded, at the County Recorders Office, in which the property is situated in. Here are a few sample deeds. You can also get some blank forms from your local Title Company. Just call and ask for the customer service department, and what type of deed you are looking for. If you are not sure, and would feel more comfortable about having this done professionally, you can hire a local escrow company to do this for you, along with the recording, for a minimal fee. If your County normally uses an attorney, to handle escrow transactions, you can contact a local Real Estate Attorney office, and have their legal secretary draft one up for you, also at a minimal fee.

Be responsible, when selling your property with a land contract, keep detailed records of all money received, and spent. You are liable for what you sell, and these records are necessary if a dispute arises.

Buying With A Land Contract

Buying with a Land Contract, and what to look for. If you find a land owner willing to sell and offer to do owner financing, they may be offering to do it with a Land Contract. Accepting monthly payments over a given time frame, may provide you an opportunity to start investing in land, for a little amount of money down. Not every land seller is willing to wait, 5, 10 or even 30 years for their money, but some land sellers, may find this an opportunity to sell in a slow market, with difficult lending opportunities.

What to look for from the land seller offering the Land Contract.
- Is the seller the true legal owner. A quick call to your local title company can give you the correct answer.
- It is a good idea to check the property records with the County Assessors Office to see who and where the taxes are being billed to, and if the owners names match who is selling the property, and offering the land contract.
- Are there outstanding liens, open Deeds of Trust(s), Mortgage(s) or any other issues that may effect the title of the land your considering purchasing.
- If there are, it is your responsibility to due the research, and ask these questions before sighing or paying anything.
- Be familiar with the Land Contract, and wording in it. Ask that the seller provide a copy, or where they purchased it from. All land contracts are not the same. Be informed, what is being offered.
- A Standard Agreement Of Sale Land Contract Form, is available on this site, that can be modified to each individual sales transaction. It is advised that you get a copy, read it, learn, and be familiar the terminology, and way one is drafted. This will give you an idea of what a eagle form looks like, when presented with the land sellers contract.

Talk with the land seller, and ask if there are any pre-payment penalties. If you want to payoff the remaining balance early, most land sellers are willing to waive any pre-payment penalties.

Ask the seller if you happen to be late with a payment, ask the seller how much is the late fee, and after what date does that kick in.

Keep detailed records of your monthly payments. Asking question, and being informed is the key to investing wisely.

How to Use A Land Contract