Writing a land contract

For instance, you could state that if the buyers are three months in arrears on their payments, the property will revert to you and they will be legally obligated to vacate the premises.

land contract interest rates

Who is responsible for taxes and insurance on the property? In addition to the writing requirement, the contract should be clearly written, and preferably drafted and reviewed by a lawyer.

Address who will pay the property taxes. A visit to a non-profit credit counseling agency will help you understand the problem and how to go about fixing it. However, the buyer has a right to have his attorney look it over in advance of signing it.

What is the current condition of the property? If you're charging interest, use an amortization schedule. However, it is critical before someone enters into a land contract that he establish a financial plan to fix whatever is preventing him from getting a loan.

Inspections protect both parties. If the tax department of the county auditor's office only collects real estate taxes on the property, then the mobile home is part of the land.

A Contract for Deed is a Security Instrument that ensures that the property owner's rights are protected.

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But how the mobile home is treated for tax purposes is the only way to tell for sure if it is considered permanently affixed to the land.

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How Land Contracts Work