| About Land Contract Legal Forms Software
What is the Land Contract Legal Forms software?
LAND CONTRACT / CONTRACT FOR DEED LEGAL FORMS SOFTWARE
If you should ever wish to sell a piece of real estate which you own, and, you are willing to finance it yourself, then you will definitely need to create a legal document called a LandContract (sometimes also called a "Contract for Deed").
Recently growing in popularity, a do-it-yourself Land Contract provides the seller with
increased revenues through the receipt of interest payments, while
allowing buyers to get into a home for which they otherwise might have
difficulty finding bank financing. The land contract software includes forms with
both installment and balloon payment structures, plus a land contract
for undeveloped property or vacant land.
Usually, residential real estate transactions are thought of in just one way: a buyer and a seller come together and 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.
Many people are not aware, however, that there is another less traditional option for the sale of real estate that is becoming more common as sellers and buyer seek to avoid real estate fees and attorney fees: it's called a Land Contract or Contract for Deed.
What Does a Land Contract Do 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 while 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.
With a properly executed Land Contract in place, the buyer can move into the property and make the agreed upon monthly payments as if he or she were renting. 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
Advantages of the Land Contract
If a buyer is having a difficult time finding traditional financing due to credit problems, or perhaps because they are self-employed or have income which is not from traditional sources, a Land Contract provides the buyer with the opportunity to purchase a home. It's a great way for such a buyer to break free of "rent payments" and begin to build equity in a property.
For the seller, Do It Yourself Land Contract Software and Forms provides a way to make additional money by financing the sale of a property, without going out-of-pocket for realtor's fees and attorney's fees, collecting not only the purchase amount but also the interest on the principal that is generated over time.
Additionally, rather than releasing title to a mortgage company, 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 payments, the seller still 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 allows the property owner to "sell" the property again should the tenant default.
This Land Contract Software Kit contains the following forms:
While there will always be some potential pitfalls to watch for with any real estate transaction, potential pitfalls specific to a Land Contract (from the perspective of both the buyer and the seller), are clearly detailed in the software.
- A Land Contract utilizing a down payment with monthly payments thereafter in order to pay the purchase price;
- A Land Contract utilizing 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 (where 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.
BONUS SOFTWARE: MORTGAGE PAYMENT, AMORTIZATION AND FINANCIAL CALCULATORS:
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