| About Land Contract Legal Forms Software
What is the Land Contract Legal Forms software?
LAND CONTRACT / CONTRACT FOR DEED LEGAL FORMS SOFTWARE
If you ever need to sell a piece of real estate which you own, and are willing to finance the purchase yourself, then you need a legal document called a Land Contract (sometimes called a "Contract for Deed").
Growing in popularity, using a Land Contract provides the seller with increased revenues from the sale, through the receipt of interest payments, while allowing buyers to get into a home for which they might have difficulty finding bank financing. The Land Contract legal software package includes forms with both installment and balloon payment structures, plus a land contract for undeveloped property (vacant land).
Most typically, residential real estate transactions are thought of in one
way: a buyer and a seller work through a Realtor and a bank or mortgage
broker to complete a sale with a single transaction and a one-time
payment to the seller. However, there is another non-traditional option
for the sale of real estate that is becoming more common every day:
it's called a Land Contract. (It's sometimes called a "Contract for
Deed" as well.)
What it Does for the Owner AND the Buyer
A Land Contract allows the owner of a property to sell that property to
a buyer over the course of time, financing the purchase price on behalf
of the buyer and collecting interest on the sale amount. The buyer does
not need to go out and find a mortgage from a bank or mortgage company,
nor does the buyer have to pay the entire purchase price to the seller
upfront. Rather, the buyer signs a Land Contract with the seller
agreeing to purchase the property in either installment payments or in
installment payments with a balloon payment on a certain date. The
buyer then moves into the property and makes the agreed upon monthly
payments. When all of the payments (and any required balloon payments)
are made according to the terms of the Land Contract, only then does
the buyer finally take title of the property from the seller.
May Possibly help with Financing
For the buyer who may have difficulty getting bank financing due to bad credit, is self employed, or has unconventional income sources, a Land Contract provides the opportunity to still purchase a home. It's a great way for a buyer to break free from paying rent each month while actually building equity in a property.
A Land Contract allows sellers to make additional money on the
financing of the sale of a property, collecting not only the purchase
amount but also the interest on the principal that is generated over
time. Plus, the seller maintains title to the property until all of the
payments are made, thereby allowing the seller to keep control of the
property. If the buyer misses any payments to the seller, the seller
keeps the previous payments made on the Land Contract as rental income,
and the option for the transfer of property to the buyer is lost.
This Software Land Contract Kit contains the following forms:
- A Land Contract using a down payment with monthly payments thereafter in order to pay the purchase price;
- A Land Contract using a down payment, with monthly payments thereafter and then a balloon payment at a later date in order to pay the purchase price;
- A Memorandum of Land Contract that can be filed with your local recorders office (when applicable);
- A Land Contract for Vacant Land, for property that has no dwelling on it and is undeveloped;.
- Property Disclosure Forms, many of them state-specific, required for nearly all real estate transactions;
- A Termination of Land Contract, used when the purchasing party defaults on the contract as a way to reclaim clear title.
While there are always some potential pitfalls and things to watch for
within a Land Contract (from the perspective of both the buyer and the
seller), these pitfalls are clearly detailed in the software; just
another reason to use the Land Contract software from Standard Legal!
BONUS SOFTWARE: MORTGAGE PAYMENT, AMORTIZATION AND FINANCIAL CALCULATORS:
one for compound interest) are included for simple loan payment calculations, plus a complete, downloadable, "Calculator Software Suite"
featuring a number of great calculator tools: Quick Calculators, Mortgage Qualifier Calculator, Loan Spread Calculator, Amortization
Schedule Calculator, Closing Costs Calculator, Rent versus Buy Calculator, Biweekly Payments Calculator, Prepayment Calculator, and a
Home Seller's Proceeds Calculator. These tools let both buyers and sellers examine all of the pricing and financing options!
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