Looking to sell my property through land contract

2 Replies

Hi all, I am looking to get rid of one of my properties to one of my contractors who is willing to put 25% down and make monthly payments with 5% interest over 3 years. I have complete confidence he will be paying off earlier and won’t be missing payments, so that is not one of my concerns. My concern is that I have never done this before and don’t know the technicality behind it. My realtor says I just need to put together a land contract and have the title company review it and officially file it. Are there additionally steps? How would I set up a monthly invoice? The buyer plans to rehab the property to make it rent ready, it is currently in bad condition which he knows cause he is the one that boarded it up during the winter. The property will be sold as is. My understanding is that I will still own the deed but he will have equity interest until it is paid off. Is it possible that I would still have liability in any sense? Thanks in advanced.

@Henry LiChi I did mine through an attorney. Essentially... 

a contract was written and signed with notaries present. 

It was filed by the attorney with the county auditor

Checks are then collected, 2 separate certified checks. One made to the broker the agent worked for and another to me.  

Then once the contract is up or the person is ready to pay the remaining balance it will go to a title company for the transfer of the title. 

Contact a real estate attorney to draw up the paper work having the buyer pay all the costs of the transaction. Real estate agents have NO CLUE as to what is correct and legal!!! They are NOT lawyers nor should they be giving any kind of legal advice. Doing it without an attorney you'll always be nervous if it was done properly!!! 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you