You two are a legal accident looking for a place to happen. What you’ve been told is absolutely wrong.
I shouldn’t knock this kind of dealing though because this is the stuff that helps lawyers pay their bills - lots and lots of bills - big ones.
The time to get legal help is now. You might go to an office supply place, buy a land contract form and get lucky in guessing how to fill it out. And you might not end up losing your shirt, but it would be pure if that happened.
My advice is use the lawyer and title company NOW. Then, there’s a good chance you might not need them when he re-fis and pays you off.
I am planning on selling a property I have on contract. Neither myself nor the buyer care about recording the sale. We’re not using a title company or attorneys. This will all be done when he refinances and pays me off. I was told that all I need to do at this point is get a standard articles of agreement contract and a warranty deed and have them signed by both parties and notorized. Is this enough to satisfy a lender when the time comes?
I am not buying the refinance thing. Interest rates are the lowest in history and the Fed Chairman Allan Greenspan droped them another 1/4 point yesterday. If, “if” they could qualify for a mortgage then they should be able to now… However; if you are interested in financing for an investment as apposed to putting you money in the bank then a land contract may be the way to go. You could get a higher rate from the buyer than the bank would pay you on your cash and you don’t have to give a chuck to taxes at this time. If you wish to get a form, then I would go to the court house and ask the clerk what one looks like, copy it, then word process it and do as they suggest. I know a bit about law, but if you don’t give the contract to a lawyer on disk and let him perfect and close the deal for you… This leg work should at least save you some money and open your eyes a bit…