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#247030 - 08/29/08 04:07 PM
Help with Land Contract
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Member
Registered: 07/17/07
Posts: 13
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I'm having some trouble coming up with information on a and contract situation for a client. I originally listed the property for $250,000 about a year ago. It expired about 6 months ago and now the owners are thinking about a land contract. The market is heavily REO driven, but the property is in one of the nicer area of the city. They have a $130,000 mortgage on it.
What is a good down payment for this type of property? Who holds the deed in this situation? Who is responsible for insurance?
Appreciate any help.
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#247034 - 08/29/08 04:47 PM
Re: Help with Land Contract
[Re: Twill]
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Major Contributor
Registered: 09/01/06
Posts: 2834
Loc: upstate New York
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Twill,
In my experience a typical real estate agent is not in a position to handle land contracts, at least not alone. Real estate agents typically use forms, already approved by an attorney, where they fill in blanks for the variable data (names and addresses for the parties to the contract, identifying the property being sold, the price, the terms, closing date, contingencies, etc.). They do not write contracts from a blank sheet of paper as they might be considered to be practicing law. Yet with land contracts, because of some of the variables you mention (and many more too), there are no blank forms generally available for agent use. This should involve an attorney to draft the document that is agreeable to all parties. There is still a role for the agent in matching up the buyer with the seller and negotiating the terms but if they don't have appropriate forms then an attorney should draft the contractural language.
Mr. Foreclosure
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#247089 - 08/29/08 08:08 PM
Re: Help with Land Contract
[Re: Mr. Foreclosure]
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Member
Registered: 07/17/07
Posts: 13
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Twill,
In my experience a typical real estate agent is not in a position to handle land contracts, at least not alone. Real estate agents typically use forms, already approved by an attorney, where they fill in blanks for the variable data (names and addresses for the parties to the contract, identifying the property being sold, the price, the terms, closing date, contingencies, etc.). They do not write contracts from a blank sheet of paper as they might be considered to be practicing law. Yet with land contracts, because of some of the variables you mention (and many more too), there are no blank forms generally available for agent use. This should involve an attorney to draft the document that is agreeable to all parties. There is still a role for the agent in matching up the buyer with the seller and negotiating the terms but if they don't have appropriate forms then an attorney should draft the contractural language.
Mr. Foreclosure Appreciate the input. I'm not to the point of writing up the contract myself, I'm really trying to get as much info as I can so that I can advise my client. Thanks again.
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