Tax question about buying seller financing
Hello Everyone!! I'd appreciate any input in regards to purchasing a plot of land with seller financing.
**For some reason, accidentally wrote "tax" question on title. This has nothing to do with tax and everything to do with safely buying with seller financing**
My wife and I are interested in potentially acquiring a plot of land to eventually build (for resale or live in). We are dealing with a seller who has tons of plots of land available in the state of Texas. There has been no red flags so far as the seller has been very helpful and transparent. They send out mailers and pretty much acquire plots for bottom dollar, and go for the quick sale below market value ("land wholesalers").
My question: How do I keep myself safe if I were to proceed with this seller financing? I am sure there are cookie cutter agreements for these things and that I just may be extra paranoid about ensuring that everything is safe for me. From my understanding, the deed does not actually transfer to my name until the entire balance is paid. During the payment period, how can I ensure and guarantee that the land is clear and will transfer to me once balance is complete? Should I request for the deed to be held under escrow?
In terms of the payment plan, it will be something along the lines of 10k sale price, with 2k deposit and monthly payments over 24-36 months.
Thank you in advance!!