1 / 2

Important things to know about a land contract

Land contracts allow the person to pay for the property in installments after paying nearly half of the amount as down payment. The idea of issuing these land contracts is most common in cases of land for sale in Michigan.

provens
Download Presentation

Important things to know about a land contract

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Important things to know about a land contract The land contracts are legal documents which contain the terms and conditions related to the sale and purchase of a real estate property. They are much like a mortgage paper but unlike mortgage papers, land contracts allow the person to pay for the property in installments after paying nearly half of the amount as down payment. The idea of issuing these land contracts is most common in cases of land for sale in Michigan. What are the advantages of land contracts? Under it, he can buy the property by paying for it in comparatively smaller installments without any hassle of working on with the mortgage issues. On the other hand, the seller also gets benefited by the contract for deed. It is because he can raise the price of his property as he is providing the option of land contract on it. Moreover, this written contract serves as the proof for the entire buying-selling procedure. When does the buyer get the entire charge of the property as the owner? Ever since the buyer gives in the down payment to the seller and continues making payments in small installments, he is considered as an ‘equitable title to the property’. Being the equitable holder of the title for the property, the buyer has indirectly become a claimer of the property. The seller can no longer make a move to sell that particular property o a third party. However, the legal title of complete ownership remains with the seller until the day the buyer makes the entire payment. Once the final payment is issued and all the terms and conditions mentioned on the contract for deed have been met, the title gets transferred to the buyer. What would happen if the buyer fails to pay the installment?

  2. Generally, in the case of land for sale in Michigan, if the buyer defaults in meeting to the terms of the contract or fails to make the payment of installation, a case can be filed against him. The seller can file a case against the buyer under the circumstances of land contract forfeiture. In short, it can be said that in such a case, the entire money received by the seller as well as the property remains with the seller.

More Related