LAND INSTALLMENT CONTRACTS
What is a land installment contract?
A land installment contract is a special form of agreement for the purchase of land which does not include a mortgage and is expected to be in effect for at least one year. A dwelling must exist upon the land in question. It is an alternative method of purchasing or acquiring real estate. This method is popular during periods of a poor economy; when the purchaser is otherwise unable to obtain traditional financing, and certain estate planning objectives. A land contract functions as a form of seller financing. The buyer takes possession of the property, but the seller keeps the title to the property until the buyer has fully met the contract terms. The deed is retained by the seller and delivered to the buyer only upon payment of the final installment.
Buyers should not confuse this type of contract with an Option to Purchase contract, usually offered by realtors. They are not the same.
What should I know regarding a land installment contract?
A land installment contract must be in writing, notarized, and contain certain terms required by Ohio statute. It must be recorded in the county where the realty is situated in order to protect the buyer against any bonafide purchasers who may later claim an interest in the realty. Too many attempted land installment contracts fail in their purpose due to poor drafting and a lack of understanding the unique essential requirements by either the buyer or the seller. A buyer can literally find himself in the legal position of a renter after making payments for years if the contract is not prepared properly, and worse!
Less protection is afforded the buyer in the sense that if he defaults in the rental payments, the seller need only serve a written notice, the contents prescribed by law, that he intends to claim the land as forfeit by the buyer. The buyer must make good his payments within thirty days or forfeit the contract. The seller need only request a court to return possession of the land to him through an eviction proceeding, similar to a renter of leased premises. This offers the buyer far less legal protection than if he had a mortgage arrangement for the purchase. However, if the buyer has made payments for a period of five years or more, or equal to twenty percent of the purchase price prior to the default, the seller must pursue a foreclosure and judicial sale of the foreclosed property.
If you are planning on purchasing/selling realty through a land contract, it is strongly recommended that you seek legal counsel. DO NOT ATTEMPT TO DRAFT A LAND INSTALLMENT CONTRACT ON YOUR OWN.
LOCATION TO SERVE YOU:
1. Clients: Catalina Manufactured Home Park at 6501 Germantown Rd., Lot 41, Middletown, Ohio, 45042, on State Route #4 [My Home - by appointment only] (Near the Land of Illusion Haunted Scream Park.)
2. Phone: 513 423-8912
3. Email: Monte
1. Clients: Catalina Manufactured Home Park at 6501 Germantown Rd., Lot 41, Middletown, Ohio, 45042, on State Route #4 [My Home - by appointment only] (Near the Land of Illusion Haunted Scream Park.)
2. Phone: 513 423-8912
3. Email: Monte
THE INFORMATION PROVIDED ON THIS SITE IS INTENDED TO BE A BRIEF OVERVIEW OF SOME OF THE LEGAL PROCESSES INVOLVED IN THE ISSUES ADDRESSED. ALL INFORMATION IS LIMITED TO OHIO. IT IS NOT INTENDED AS LEGAL ADVICE ON YOUR PARTICULAR CIRCUMSTANCES. IT IS ONLY INTENDED TO ASSIST YOU IN UNDERSTANDING THOSE PROCESSES.
