How to use a Land Contract For Owner Financing When Selling Land
The Land Contract form is used to put in writing the terms of payments for financing your property.
You maintain land ownership, and receive payments from the buyer till the full amount is paid off. This lending agreement is customizable for your land transactions.
The Installment Land Contract is a type of sales agreement which the property buyer is required to make monthly payments towards the purchase price of land or other real estate and when paid in full, and the last payment is made, the seller delivers the Grant Deed, conveying full title to the buyer.
Land Property Sellers
When selling your land, and you want to financing the land buyer, using the Land Contract form, pre-filled out will get it done. This 2 page Land Contract will get you started. Includes most standard clauses that protects you, the land seller in most situations. Please take a look at the image of the land contract form here ( Free Sample Land Contract Form ) and you will see what your getting. Simple, Easy to use, and it is delivered to your email account instantly.
Using A Land Contract
One thing to understand is that the ownership stays with the land seller, until the final payment has been made to the land seller. 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. A Land Contract is a legal binding agreement between land seller, and land buyer. Some use the term Contract For Deed, because title is transferred when all payments have been made, as specified in the Land Contract.This is also called a contract for deed. Here is more information on How To Use A Land Contract
Easy to draft your land contract, basic property information easily typed in with your word pad
- The legal description, usually from your deed
- Determine your Interest Rate. Amount of interest you would like to charge the land buyer for the term of loan. Take into factor real estate usually appreciates 4% per Annam in good markets, and inflation may devalue what is in the contract, for long term loans.
- How long will the loan be for, considered the Term of the loan. How many monthly payments, and will there be a balloon payment at the ending date specified in your land contract agreement.