Buying, selling, or leasing a house or land doesn’t come easy. For you to own, sell, or lease such properties, there’s a need for you to produce and sign forms for a purchase agreement or contract for deed. This type of printable and fillable document is common to real estate businesses. It entails the land sale stipulations, such as monthly payments or installments, termination, and more. Given that it’s a contract, it shares the same purpose of the other type of contracts, which is to guide both parties of their obligations and to protect them from lawsuits if a breach occurs. Discover more about the legal document with the help of our highly relevant article and browsing through our collection of land contract form examples below!
A land contract form is a fillable process document that is prepared by landowners for clients who want to get into a land contract with them. Michigan attorney Kelsey Cooke described land contracts in her article for Nolo as a form of seller financing. The latter process, according to her, is similar to a mortgage, minus the lenders and banks and with the addition of property owners, themselves. In other words, the buyers will directly settle their periodical payments to the landowners until the total selling price is paid in full. Of course, the payments include taxes and interests.
If you’re a seller who wants to sell a property quickly, then seller financing is right for you. But how does it work? It’s basically a real estate arrangement where sellers offer their properties to buyers for installments with interest rates. Provided that your property has been on the market for a long time now, seller financing is a good way to attract prospective buyers. At the same time, this method is highly advantageous to buyers, as well, just like in the following instances:
1. The property for sale has rejecting qualities that typical lenders take into account.
2. The buyer doesn’t have enough money for a down payment, making him or her unqualified to avail of bank loans or mortgages.
3. The buyer just can’t meet some of the bank loan or mortgage requirements.
In creating a land contract form, you have to be very good at anticipating the areas that your planned document must take into account. For more accurate detailing, you also have to conduct research on various relevant and reliable sources or data inventory. Fortunately for you, you don’t have to go through that hassle anymore because we’ve provided you with a thorough outline of such a form. Check them out below.
Start your land contract form by asking the participants to fill in their full names. As you make that introduction, indicate who the seller is and who the buyer is. At the same time, give a short summary of what the contract is about.
After introducing the partakers, ask for a thorough description of the property that’s for sale. This should include the property’s selling price, as shown in the real estate organization’s price chart or real estate social media posts if there are any. Aside from that, the location and size must be presented, too.
There are two ways that the buyer can fully pay the property’s selling price. It’s either he or she will have the seller financing or bank financing. The former has been clearly discussed above, while the latter is pretty much self-explanatory. Regardless of which type of financing the buyer will choose, you have to ask for it in your form. The payment schedules and payment amount should also be asked.
Payments under a real estate purchase agreement come with interests and taxes. To let the buyer understand how these components are calculated, you have to put them into writing in advance.
Land contracts usually last for four to five years. Sometimes, they may take longer. During this period, the land or house property could wear off. To avoid that, maintenance agreements have to be included in your form. Just like interests and taxes, they have to be written in advance.
Smooth business deals are very rare, especially in the real estate industry. For that reason, affixing conditions about non-payment or breach of contract is a must. Part of the important pieces of information that you have to include in this section is the dispute resolution policies.
The final section of your form must be blank or specified space where the involved parties, the buyer and the seller, can imprint their signatures. These signatures officially recognize the mutual consent of the two participants on the overall purchase and sale agreement.
The common types of seller financing arrangements include the following:
1. All-Inclusive Mortgage
2. Junior Mortgage
3. Land Contract
4. Lease Option
5. Assumable Mortgage
There are three types of land contracts. They consist of the following:
1. Installment Sale Land Contract
2. Wraparound Land Contract
3. Straight Contract
Yes, they do. They also go by the name contract for deed, land installment contract, agreement for deed, installment sale agreement, and agreement to purchase and sale.
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” This was a quote from the famous American entrepreneur Marshall Field. The factors that were mentioned were the best criteria people look for in an investment. And indeed, real estate has low risks. This is because land and house properties increase in value more times than they decrease. When it comes to selling or buying a property, there’s nothing more effective in giving legal protection than a contract, and creating one as soon as possible is made easier with forms.