The crash of the housing market has left a number of Land Contract holders facing balloon payments on amounts that are equal to or greater than the current market value of the property. Mortgage companies will not lend money to borrowers for such an over-valued purchase, even if the buyer has made several years of payments against the Land Contract.

So what options are available to the buyer and seller who find themselves in such a situation in a Land Contract? [ Read More… → ]

The first fact to understand in such a circumstance is that a person cannot create a Will that distributes property they have already sold. [ Read More… → ]

A Land Contract can be sold or assigned to a third party purchaser — assuming that the terms of the Land Contract itself permits such an assignment or sale. [ Read More… → ]

Standard Legal always recommends that every single pertinent detail to any property transaction be included within the Land Contract document covering said transaction.

But the nature of the question raises a rebuttal question.  [ Read More… → ]

The answer to whether or not mineral rights are conveyed with the property in a Land Contract situation where said rights aren’t expressly covered may depend upon state law — or a court’s interpretation of state law. [ Read More… → ]

So long as the buyer under the Land Contract continues to make payments and lives up to the terms of the existing contract, that contract cannot be ignored or invalidated. [ Read More… → ]

Yes, a Living Trust can use a land contract to sell a property held in its name. The Land Contract simply needs to be completed correctly for a Trust. [ Read More… → ]

Financial issues affecting a deed holder and/or his or her personal legal situation is the primary drawback to purchasing real estate using a Land Contract. But in nearly every situation (except fraud!), the law sides with the person who is making payments on the land contract property. [ Read More… → ]

It appears that such a question is based on the idea that a person who has a Land Contract on a property wants to “sell” that same property to another party, also under a land contract structure, in essence creating a second land contract.

Of course, such a transaction would require the approval of the title-holding property owner.

And while there could be a number of potential legal and financial pitfalls in creating a second land contract on a property that already has such a land contract in place, it’s possible that such a structure could be done legally. [ Read More… → ]

A land contract holder can pursue financial claims against the occupant for any damages done to the property in a contract for deed situation. If the owner / contract holder cannot reach an agreement with the occupant through direct negotiations to resolve the issue, the owner would proceed against the occupant by filing a lawsuit against the contracting resident in an attempt to gain a judgment and then collect on that judgment. [ Read More… → ]

If an unmarried couple decides to split up and both persons are in disagreement as to whom should continue the interest in an ongoing land contract, the maker and holder of that land contract would be wise to require specific documentation of the resolution of such an issue before making any changes to that contract. [ Read More… → ]

Rarely is anything “typical” as to closing costs or down-payment percentages as they related to the content of a Land Contract, as both items are negotiable and based on the interests of the parties specific to the contract. [ Read More… → ]

The federal government’s “first time home buyer tax credit” applies to real estate properties purchased by a person who has never owned a home in the past, so long as the purchase is completed by the deadline that has been set for the program (but may be extended again).

The issue with applying for and receiving this tax credit through the use of a land contract is the right to the transfer of Deed, among other specific requirements. [ Read More… → ]

Typically, the “buyer” in a Land Contract does not own the property or hold clear title until the entire amount due as listed within the land contract document is paid.

So the Land Contract “buyer” cannot sell the property until all payments have been made and the Deed has been revised with the county recorder to show sole ownership.

Until such a time and in most cases, only the current Deed holder can sell the home, with deference to the terms of the land contract.

To create a well-written Contract for Deed that specifies these very types of situations in writing, see Standard Legal’s Land Contract legal forms software.

Land Contracts have a number of names: sometimes they are called Trust Deeds, Contract for Deed, Deeds of Trust, Notes, or Privately Held Mortgages. But they all represent the same thing: a way of selling property where the buyer relies upon the seller for the financing rather than paying cash up front or borrowing from a bank.

So what is the process of buying a home or undeveloped property via Land Contract? [ Read More… → ]

Most land contracts allow the current owner to retain title to the property until such time as the purchase price in the contract has been fully paid. As such, creditors most likely will not have a right to pursue a home purchased under a Land Contract, as the “buyer” in a land contract is not the titled owner until all payments are made. [ Read More… → ]

Selling a house via Land Contract or Contract for Deed allows the seller to finance the purchase price on behalf of the buyer. The seller maintains a financial interest in the home until the buyer pays off the Land Contract fully.

The question of insurance comes into play when the property detailed in the land contract is under mortgage with the seller, and not owned outright by the seller. [ Read More… → ]

If a tenant in a lease or a buyer in a land contract do not make the monthly payments as their contract dictates, the property owner must take legal action against the defaulting party to reclaim their property. [ Read More… → ]

The parcel number and prior recording date should be contained on the existing Deed for the property. If you do not have a copy of the existing Deed, check with your county recorder’s office.