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.
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.
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.
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.
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.
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.
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.
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.
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 … Read more
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?