What Is A Land Contract – Contract For Deed?
What is a Land Contract, or sometimes referred to as a Contract For Deed.
We will explain what a land contract is used for and how this real estate lending agreement can benefit the land owner, wanting to sell, and make a little extra interest, by giving owner financing.
A Installment Land Contract is a type of agreement which the real estate buyer is required to make monthly payments towards the purchase price of the land or other real estate and when all paid off, when the last payment is made, the real estate seller delivers the deed, conveying full title to the buyer. A Grant Deed is then recorded at the County Recorders Office, in the new owners name, effectively completing and transferring title.
When selling your land, and you want to financing the land buyer, using the Land Contract form available here is quick and easy. It is pre-filled out, just open it in any text editor, and type in your own information. You can use this form as many times as you like. Have a look over the 2 page Land Contract, and you will see the time saving benefit of having this form available, when you need it. Includes most clauses that protects you, the land seller in most situations. ( Sample Land Contract )
A Land Contract is a legal binding agreement between the seller, and buyer. Some use the term Contract For Deed, because title is transferred when all payments have been made, as specified in the Land Contract.
The main thing to acknowledge is that the ownership stays with the land seller, until the final payment has been made to the 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. This is also called a contract for deed. Here is more information on How To Use A Land Contract
Information Needed To Draft Your Land Contract form.
- The legal description, usually from your deed
- Determine a fair 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.
Land Contract e-Form, computer ready to be filled in... Easy to edit with WordPad, modify sample text directly in form emailed to you in digital format. Edit and print
Price: $4.95
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