Selling Land With Owner Financing
How to use a Contract for Deed, or Land Contract, for owner financing your land for sale.
A contract for deed is used for selling your land and being the bank. You can sell your land, and offer seller financing with a land contract form. This lending agreement can benefit the land owner, by making a little extra interest offering owner financing.
The Installment Land Contract is a type of sales agreement which the real estate buyer is required to make monthly payments towards the purchase price of land or other real estate and when all paid off, and the last payment is made, the seller delivers the grant deed, conveying full title to the buyer.
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. ( Free Sample Land Contract Form )
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
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. Edit with any text editor
Price: $9.95
