A land contract contains a property description, total sales price, payment plan, title disposition clarification, boilerplate provisions, space for the parties to sign and the contract date. Each party should have a copy of the contract.Continue Reading
Start by describing the property in the contract's first section, taking care not to include a street address due to their dynamic nature. Be sure to copy the property description as contained in the county land records. Include the total sales price of the property after the description and a payment plan, including the interest rate, penalties in case of a delay in the payment and default provisions. The payment plan should also indicate the mode of payment and the details relevant to the payment mode. For instance, a bank transfer payment necessitates the inclusion of the bank account details in the contract.
Next, indicate a clear title disposition. Typically, the seller retains the property title until the buyer clears the last installment. In case of payment default, the seller is legally entitled to retain the property ownership. Include all these details in clear terms. Additionally, indicate any compensation following the buyer's failure to acquire the title. Follow up by writing boilerplate provisions, which include dispute resolution mechanism and legal notification methods.
Finally, provide space for the signatories, and write the date of the contract. Make two copies of the document, allow each party to sign both copies before a notary, and serve each party with a copy.Learn more about Real Estate