Posted by David G. on October 10, 2003 at 15:59:02:
You can also do the closing yourself. This is recommended if you dont have the funds to get a lawyer.
You also need to worry about the realtor fees. You said that a realtor is involved, they will ask for their 6-7% commission upfront unless hes willing to accept a second mortgage or promissory note for the balance of his commission.
If you send me a copy of the deed and contract,I can draw up a Land Contract or contract for deed and fax it back to you where it just needs to be signed and notarized and recorded.
Buying on Land Contract…How to? - Posted by Joel David
Posted by Joel David on October 08, 2003 at 16:25:46:
I am looking at a nice duplex that I would live in. Its paid off and the woman is going into an assisted living building.
My idea to help us both out is to do a land contract, however, I have never done one of these before and I would like to know the pitfalls.
I can come up with 5% down (building is selling for $260K) and I was thinking of asking for a land contract @ 4% for 5 years.
Would I make payments directly to the seller for the 5 years?
Do I get the tax benefits?
Do I need to record it somewhere…I read somewhere that some guys try to weasle out of signing over the deed at the end of the contract.
Who usually draws these things up?
What questions/concerns do sellers usually have with these things. There is a realtor in place and the son is kind of handling the selling of this thing so Im sure he would be a little nervous about this whole arrangement…how can I calm his nerves (offer him a cup of tea with honey maybe
Anyhow, any help you can offer would be greatly appreciated!
You should get a hold of your yellow pages and contact a real estate lawyer. He can draw up a land contract and a note. Here they charge around $600.00 and we close at the lawyer’s office, so there is always piece of mind for the seller.
A rule of thumb that I use with land contracts is, if I am buying I record the note, if I’m selling I don’t.
Contact your local county office and ask for the department of property records, they can tell you where to record.
