How To Use A Land Contract Form

	Why Land Owners Use A Land Contract What is a Land Contract and How To Use a Land Contract There are several reasons why a land seller may opt to use a land contract. Here are some of the basic reasons why, and what a land contract is. Sometimes a willing land buyer is unable to obtain financing from a lending institution. To obtain a loan for a piece of property that is a vacant lot, or acreage, may be out of the question for a lending institution to take on. The mortgage industry has been going through the ringer lately, from one bank taking over another, banks closing, to flatly denying any loans to non income producing property. This means, loans to buy land or acreage are more difficult to get. For land sellers this makes it more difficult to sell the acreage that they bought for an investment years ago. Lacking neccessary cash, the interested land buyer may be foreced to wait till more money is saved or the mortgage mess corrects itself. How To Use A Land Contract Many new to land investing ask What Is A Land Contract? A Land Contract is the agreement between the land sellers terms, and the land buyers intentions for compleating the land transaction, as written in the Land Contract form. The terms and conditions written in the land contract form, require the following information to be valid. - The Date, the sale agreement was drafted - Parties to this agreement, Land Seller (Record Title Owner) and the Buyer - Legal Description - County and State it is located in, and - Legal Description Of Land, usually same as what is on the Grant Deed. - Price Terms - Down Payment, Cash Price, Total of all payments including interest - Loan Terms - Monthly Installment Amount to be paid to land seller - Interest Rate - Date monthly payments are due - Length of this loan, how many months to make payments to land owner - Other Considerations - Prepayment penalties - Late Charges, after what day, and for how much - Names and Signatures of Buyers and Sellers A land contract may also bring into consideration a Balloon Payment. This is highly speculative way to purchase land, due to uncertainity of obtaining a loan at the end of the term of the sales agreement contract. More information about what a land contact is. A simple land contract form can be obtained here on this site. The form can be modified with a text editor to suit your particular need. Land-Contract.net Copyright © 2009 Land-Contract.net GLG Publications All Rights Reserved \| Customer Service Number: 206.350.6960 None of the content displayed or delivered may be redistributed without prior consent.

Why Land Owners Use A Land Contract

What is a Land Contract and How To Use a Land Contract
There are several reasons why a land seller may opt to use a land contract. Here are some of the basic reasons why, and what a land contract is.

Sometimes a willing land buyer is unable to obtain financing from a lending institution. To obtain a loan for a piece of property that is a vacant lot, or acreage, may be out of the question for a lending institution to take on. The mortgage industry has been going through the ringer lately, from one bank taking over another, banks closing, to flatly denying any loans to non income producing property. This means, loans to buy land or acreage are more difficult to get.

For land sellers this makes it more difficult to sell the acreage that they bought for an investment years ago. Lacking neccessary cash, the interested land buyer may be foreced to wait till more money is saved or the mortgage mess corrects itself.

How To Use A Land Contract

Many new to land investing ask What Is A Land Contract? A Land Contract is the agreement between the land sellers terms, and the land buyers intentions for compleating the land transaction, as written in the Land Contract form.

The terms and conditions written in the land contract form, require the following information to be valid.

- The Date, the sale agreement was drafted
- Parties to this agreement, Land Seller (Record Title Owner) and the Buyer
- Legal Description
  - County and State it is located in, and
  - Legal Description Of Land, usually same as what is on the Grant Deed.
- Price Terms
  - Down Payment, Cash Price, Total of all payments including interest
- Loan Terms
  - Monthly Installment Amount to be paid to land seller
  - Interest Rate
  - Date monthly payments are due
  - Length of this loan, how many months to make payments to land owner
- Other Considerations
  - Prepayment penalties
  - Late Charges, after what day, and for how much
- Names and Signatures of Buyers and Sellers

A land contract may also bring into consideration a Balloon Payment. This is highly speculative way to purchase land, due to uncertainity of obtaining a loan at the end of the term of the sales agreement contract.

More information about what a land contact is.
A simple land contract form can be obtained here on this site. The form can be modified with a text editor to suit your particular need. Land-Contract.net