If accepted, the buyer will need to pay the earnest money deposit (use earnest money deposit receipt) and begin their due diligence period. Step 2 – Wait to Hear from the SellerĪfter the contract has been finalized by the buyer, the seller will need to either reject, counter-offer, or accept the terms of the agreement. The buyer will need to enter all the information about the land, which can be obtained from the local assessor’s office, and list any conditions for the sale. In order to make an offer for purchase, the buyer will need to complete the land contract either themselves or with the assistance of a real estate agent or attorney.
This is a simple guide on how to legally purchase land and have recorded in the buyer’s name after the closing.
Even though the buyer will own the property after the closing, the seller will be a lienholder with the rights to repossess the property if payment is not made.
Also referred to as “owner financing”, it allows a seller to act as the bank and collect principal plus interest payments from the buyer. Installment Land ContractĪn installment land contract is when a buyer makes payments after the closing to pay the sales price. A land contract, similar to a standard purchase and sale agreement, details the agreement between the buyer and seller including any conditions, contingencies, and due diligence periods. By StateĪ land contract is a document that establishes the terms and conditions for the purchasing of vacant land for cash or trade. If the buyer does not purchase by the closing date, any earnest money deposit may be kept by the seller.
Depending on the terms between the parties, a contract will commonly include a purchase price and a closing date.