Land Contract

LAND CONTRACT

Also known as an installment purchase contract, a land contract is an agreement drawn between a buyer and seller for the sale of property. Transfer of property to the buyer can only be done when all payments have been made. It is a written and signed contract in which a seller agrees to sell and a buyer agrees to buy property. The selling price is paid over a period of time on terms defined in the contract.

Land contracts are extremely common all over the country. It is a relatively simple document but despite its simplicity it is ideal to seek legal assistance when drafting this kind of contract.

A land contract will cover the following topics:

1. parties to the contract
The contract should specify the seller (Vendor) and the buyer (Vendee) and their respective addresses.

2. legal description
The parcel of land to be sold must be carefully described in this document. This should match the description found in the deed. The city, village or township of the property is noted, together with the county and state. Besides the land to be sold, the seller must also describe the things found on the land to be included in the sale, like buildings, tenements, improvements and appurtenances.

3. price and terms of payment
The contract should signify the total purchase price, down payment, beginning balance and remaining balance, terms of payment, interest rate and due dates of payments to be made.

4. taxes and insurance
The contract should indicate which party is responsible for making tax and insurance payments.

Lease with Option to Purchase Form

A lease with option to purchase is like a regular lease but it gives the lessee the right to purchase the property at some time before all of the lease payments have been made. It is a combination of real estate rental, sales and finance technique. The seller agrees to give the buyer the exclusive right to purchase the property. The buyer is given the right, but not the obligation.

The price of the property is usually agreed upon by the tenant/buyer and the landlord/seller at the onset of the agreement. The duration of the lese is usually 12 or 24 months. The tenant/buyer gives a deposit (which is non-refundable) and this amount is applied to the contract price of the property. Monthly payments are made by the tenant/buyer and a portion of this is considered as rent for the use of the property and the rest is considered as an installment payment for the property to be purchased. At the expiry of the lease, the tenant/buyer has the option to buy the property based on the conditions agreed upon at the beginning of the contract.

Buyers find lease with option to purchase as an ideal option because little up-front cash is required. The tenant/buyer can also try out the property before actually buying it. Aside from this, the property will also most probably increase in market value as the contract expires indicating a good investment on the part of the tenant/buyer.

Advantages for the landlord/seller is that with the strong demand for lease-option properties there will always be somebody who will be renting his property. The non-refundable consideration for the option is a huge amount, typically thousands of dollars. Plus the landlord could demand for a high price for his/her property because of the strong demand for lease-option properties.

Furthermore, the landlord/seller will almost always get top quality tenant/buyers since the latter will take good care of the property as if they own it.

Purchase an Offer to Purchase Form

CHOOSING A REAL ESTATE AGENT

A real estate agent is a person who is authorized to act as an agent for the sale of real estate property. It is important that you choose the right agent as he or she can make all the difference in ensuring a trouble-free process when buying, selling or renting property. Buying or selling your home can be a major event in many people’s lives, and it makes sense to get help from a professional whose abilities you are confident of.

Here are the following questions one should ask a prospective real estate agent:

 Ask if they are licensed and if the license if updated.
 Ask if they work part time or full time for you. You’d want to sell your house ASAP, thus you would require their full attention and marketing it part time will surely cause a delay in your sale.
 Ask them regarding any training they have undertaken and if the training is current. Ask if they are Internet savvy because you may want to list your home in real estate web sites.
 It would be a good idea to ask your real estate agent to provide you with the current listings in your area. This includes which houses are on sale and their respecting selling prices, as well as the full details of the property, i.e. area of the land, floor area of the house, inclusions etc. this should guide you in coming up with the right price when selling your home.
 Ask the agent their strategy in selling your home. It would be ideal to get their selling plans in writing. You would want your home to be seen in practically all listings i.e. the web, print etc. when certain expectations are not met it would be a major disappointment to the seller, so it would be good to have the agent commit to this written list of strategies in selling your home.
 Ask if they will accept a contract for 90 days or less. Some agents try and force you into exclusive contracts for six months to a year or more, and the drawback to this is that the agent may begin to slack off his job later on. Your home doesn’t get sold and may end up sitting there for a year, or even longer.

Real Estate Breach of Contract, What are your Options?

Contracts are promises between parties that the law will enforce. The law provides remedies if one, any or all of these promises was or were not performed. The failure to perform a promise or the provisions stipulated in the contract without a legal excuse is called breach of contract.

A breach of contract is a legal concept wherein one of the parties in a binding agreement did not honor the provisions due to non-performance or there was interference with the party’s performance.

A breach may be of three types, one is a minor breach or partial breach or immaterial breach where non-performance affects only small, minor details of the agreement and may not affect the outcome of the contract. A major breach or material breach is the non-performance of a party that has affected the outcome of the contract. The third type of breach is the anticipatory breach is a definite indication that the party will not perform when performance is due and here, the aggrieved party is given the option to treat it as a major breach. The aggrieved party can sue for damages in both major and anticipatory breaches.

When there has been a breach of contract, the question of damages is raised. The type and amount of damages which the aggrieved party can claim depends on several factors: which party breached, what damages were incurred, what the contract states with regard to damages, whether the breach is material, and the subject matter of the contract.

There are four types of remedies to a breach of contract. These remedies are also knows as damages which the wronged party can claim from the non-performance of provisions in the contract:

1. MONETARY DAMAGES
A suit for damages is sought by the wronged party by asking an amount equal to the extent of loss suffered. A wronged party may find that the property in question was misrepresented but opts to accept the property in addition to compensation for loss incurred. Or the wronged party may not accept the property at all but still file for damages.

2. SPECIFIC PERFORMANCE
When monetary compensation is not sufficient, the wronged party may sue the other party and ask the courts to compel the latter to perform as the contract specifically states. Courts order specific performance when the subject of the contract is unique. In real estate contracts, the land in question is unique.

3. LIQUIDATED DAMAGES
Parties of the contract may opt to include a provision in the agreement that specifies damages in the event of a breach. Such predetermined damages are called liquidated damages. This is usually the earnest money deposited by tenants to landlords. When the tenant decides not to continue his lease with the landlord, the latter may forfeit the money as a damage award.

4. RECISSION
Rescission is an option by the wronged party when he wants the contract to be cancelled. Here, the court will return the parties to their positions before the contract. This happens when both parties made a mutual mistake regarding the subject matter of their contract. If the parties have exchanged goods or money those items are returned thus returning them to their initial positions before the contract.

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Blank Real Estate Forms

Investing in real estate whether buying, selling or even renting is one of the biggest decisions one can ever make. Such a transaction involves risk, technicalities and most especially legal considerations. Such legal considerations are outlined in real estate legal forms that sometimes contain legal jargon that is intimidating or very difficult to understand. One is then compelled to hire a lawyer to make sure that both parties are protected and this will entail costly fees.

People who want to save money on expensive legal fees sometimes take it upon themselves to make their own legal documents. This is ill-advised as there is a danger that certain details in the transaction maybe overlooked or not included in the document.

Luckily, with the onset of online legal forms you will come to see that the process is actually quite simple and straightforward. Using these forms will reduce legal fees significantly, because the lawyer would only have to proofread them instead of actually drafting an entire legal document for you.

With just the click of a button you can download a legal and binding document in seconds. These documents can be customized to suit your individual needs. Our legal forms intend to provide personal protection, prevent misunderstandings and help avoid liabilities between the buyer and the seller, or the landlord and the tenant. In short, they cover all the legal details of real estate transactions in their entirety. Furthermore, our forms are approved in all 50 states of the United States.

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REAL ESTATE SALES AGREEMENT

The real estate sales agreement is the most important document in a real estate property sale. This is the legal document that stipulates all the terms and conditions of the transaction. It is a legally binding contract that states the responsibilities and obligations, as well as the rights, of both the buyer and seller. A real estate sales agreement shall be void and unenforceable unless it is in writing and signed by both parties.

A real estate sales agreement contains details on the following:

* Parties involved also known as the buyer and seller
* Description of the property
* Condition of the property based on the property disclosure form
* Conveyance of the property
* Purchase price which the buyer agrees to buy and the seller agrees to sell; amount of deposit; terms; transfer and recording charges; taxes
* Permanently attached fixtures
* Settlement date
* Restrictions
* Buyer’s duties and responsibilities
* Seller’s duties and responsibilities
* Default
* Inclusions and exclusions
* Restrictions, easements and limitations
* Attorney’s fees
* Termite inspection, radon gas disclosure

Like every legal document, it is greatly advised that both the buyer and seller seek legal advice from an attorney who is knowledgeable in real estate law. Before signing any document you must completely understand the contract. The lawyer can advise you if there is any problem in the contract or if certain details were not included in the document that could cause delays and could lead to extra expenses.

What Happens at the Real Estate Closing?

It is finally here! Closing day. By the time closing day arrives it is hoped that all of the requirements of the contract have been fulfilled, and that all sale & loan documents have been prepared. All parties are notified of the date. The purchaser should know the exact amount of money to bring to the closing and should bring the money in the form of a money order or cashiers check.

When the closing begins all parties will be introduced to one another. The closing will start with the explanation of all documents to be signed by the seller and purchaser. The seller and purchaser should receive copies of all of the documents while they are being explained. One of the most interesting documents is the closing statement. The closing statement outlines all of the closing cost and where the money is to be distributed. The seller will be interested in making certain that all liens and prior debt on the property is being paid off and will want to make sure that the money is allocated properly.

After all documents have been signed, witnessed, and notarized checks have been cut, the closing is finished.

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