How to set up a sell on contract

2 Replies

Thank you all in advance for the information. If there is an article, already that answers my questions, please feel free to point me in the direction.

I am exploring the option of selling houses on contract. I am wondering how everyone else has structured their contracts.

1. What are some added security measures that you have or have heard of someone putting in their contracts? (Example: Loan default, late payment penalties)

2. What are some good value adds that you have heard of? (Example: Added appreciation per year)

3. Who is responsible for paying property taxes and insurance? (I am assuming, as deed holder, you would want to carry insurance no matter what)

4. If buyer is responsible for paying taxes, what happens if they stop paying?

5. Anything else that may be of significant value to bring up?

Thanks again!

I sold one on land contract, in the process of trying to sell two more this way. I am a newbie, but what I did in the first one was the buyer was responsible for taxes and insurance, and it's worked fine. However, going forward the buyer will pay taxes to me as part of the monthly payment so I know the taxes are being paid. Also, insurance wise, the buyer will still pay, but I will be there first beneficiary in the case of a claim until the contact is fulfilled, and that will cause me to receive all copies of insurance bills, changes to policy, etc. This is how the insurance is set up on my first LC as well. Good luck!