|
Home
Latest Information
1031 Tax-Deferred
Exchange
Lease-Option
Escrows
Residential
Sales
Loan Escrows
All Inclusive
Trust Deed (AITD's)
Land Sale Contracts
Commercial Property
Sales
REO's
Relocation
Reference Numbers
& Info
|
Land
Sale Contracts
Main Parts of A Land Contract
Not all contracts will follow the exact same order, but we have attempted to cover the key topics below;
Parties to the Contract, Legal Description, Price and Terms of Payment, Purchaser's Duties, Taxes and Insurance, Seller's Right to Mortgage, Seller's Duty, Default, Assignment of the Contract, Miscellaneous Provisions, and last, Signatures and Notary.
Parties to the Contract
The contract begins with the "parties"-the people (and their addresses) who are entering into the contract. The "Seller" (Vendor) is the person who sold the property and is usually listed first. The "Purchaser" (Vendee) is the one purchasing the property and is usually listed after the Seller.
The date of the Contract is here at the beginning as well. Interest starts to "accrue" (begins being owed to the Seller) starting from the date typed in, at the top of the contract. Consequently, when the first payment is due, one month's interest is usually already owed, since it is paid in arrears.
Legal Description
The Seller agrees to convey (sell) to the Purchaser only, a carefully described parcel of land. This description must be exact. When the purchase is completed and paid off, this should match the description on the deed. The city, village, or township of the property is noted, together with the county and state.
Along with the actual "earth" sold, the Seller also conveys such things as any buildings, easements, tenements, hereditaments, improvements and appurtenances. In short, the Seller conveys everything that is permanently affixed to the property.
SOURCE:http://www.buyland.com/Land_Contract_Information.htm
|