When real estate property is sold within an owner-financed arrangement referred to as a land contract, the purchaser, called the vendee, receives fair ownership of the home, such as physical ownership and tax benefits, and assumes insurance and maintenance obligations for the residence. At the conclusion of a series of monthly payments and often a large balloon payment, the vendor or seller transfers legal name ownership.
Produce a property contract using the case provided on Real Estate Exchange.com. Include the property’s legal description, as well as also the names and addresses of both the vendor and the vendee. Indicate the quantity of the sale, less any deposit paid, the rate of interest, the quantity of monthly payments and the date and amount of any applicable balloon payment. Documents generally are provided by the real estate brokerage in the event the purchase involves the services of a professional real estate agent.
Get an owner’s title insurance policy with the guidance of the name agency. This safeguards title delivery following successful payment from the purchaser. On the property contact, you can indicate who intends to assume the cost of this policy.
Ask the name representative of your choice to run a name search of their property to guarantee no foreclosures or exemptions exist, which might hinder your ability to obtain title ownership to the house.
Sign the contract. Both seller and the buyer must sign, and have the signatures . Upon both parties’ signatures, the title company will record the arrangement with the county recorder’s office.