To sell a home under a land contract, describe the property; price the property; make the payment plan; draft and sign the contract; and file a copy of it with the county land recorder, according to David Carnes for SFGate. Transferring the title to the buyer upon final payment completes the process.Continue Reading
The first section of the contract should include the description of the property, states Carnes. To have an accurate property description, obtain a copy of the description from the local government office. When you describe the property, price the property and specify the mode of payment, be sure to indicate the interest rate and penalties related to delay and default in payment.
In the event of default, the seller is entitled to repossess the property without having to undergo foreclosure, reports Carnes. To notify the buyer of this action, state in clear terms the title transfer goes into effect after the last installment is completed. Include the "boilerplate" provisions such as dispute resolution mechanisms.
Once the contract is complete, make two copies and have both parties sign and date them, says Carnes. Keep an original and give one to the buyer. If necessary, file a copy with the county land recorder's office. Once the buyer completes the installment payments, surrender the property title to him.Learn more about Real Estate