Re: Land Contracts - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on June 25, 2001 at 11:26:15:
Your question is really too broad based for you to be expecting an answer, realistically. There are tons of courses avilable in the marketplace, as well as tons of opinions about the subject. Most any lawyer could give you sufficient info in a half hour or so to confuse you completely.
Now that said the answer is, yes.
As a long time real estate broker in Ohio let me say this. Most of what I see in the marketplace, being referred to as “Land Contracts” usually are not. They usually are missing some part or info that would make them complete. A lot of lawyers are capable of an occaisional omission that makes the contract a little off.
Ohio laws are pretty specific concerning land contracts, thier recording and thier termination, so read up on them.
Generally speaking I prefer to sell on a land contract rather than to buy that way. If you choose to buy on a L/C there are some things to be aware of, and some of them will be overpricing, especially if the down payment is very small. Concealed defects, like a bad furnace, cracked foundation, bad septic, termites, rotted timbers, etc. just to mention a few things. If it won’t appraise or pass an inspection it is often sold for a premium price on a land contract.
The land contract seller does not deliver deed, generally until the property is paid off, so this is good for the seller, not as good for the buyer.
The land contract is often used to sell to a buyer who can not qualify any other way, such as bad credit, no job, just got out of prison, and so on. The L/C situation is generally for risky situations.
All situations are however not the same. I did talk with a man the other day who owned 51 properties that he had purchased on land contract (all of them). He had no job, and did not think he would be looking for one any time soon…