www.wendypatton.com This week Wendy talks about the differences between land contracts and land trusts.
me and my new husband are looking at a couple different options to buy a new home. what is the difference between a land contract and a lease with the option to buy? Any help would be very welcome! thank you!
I’m a realtor, and I’m used to getting paid my commission at the closing table, when all the funds are being moved around. But I’ve got a client who’s desperate to sell, and they want to tap into the market of "unfinanceables" who are looking for a land contract or lease purchase deal. I know that would bring offers from would-be buyers, but since theres no six-figure payoff going on at closing, demanding my 5% is pretty uncomfortable. Hope someone out there has experience. Jane.
I am particularly concened with the tax issue. The tax break would go to the owner right? Can you write a land contract where the tax break stays with the original owner? Is the best way to handle this just optioning it out at a higher price?
Thanks!
thanks that’s a really succinct and good explanation…I would get an attorney to do the land contract.
There’s a great house I have my eye on that’s a fabulous price and it’s a short sale. I’m self-employed and need to be able to show more business tax returns before I can qualify for a traditional mortgage. Would it be possible for me to make a lease with an option to buy offer on this house? Similarly, would it be possible for me to make a land contract offer on this house?
I have a lot that I want to sell on monthly payments through seller financing in Pennsylvania. I don’t want to use a land contract. Can I just use a standard purchase and sale agreement which states the terms, ie payments, etc. or do I need additional instruments as well like a note, vendor’s lien deed, etc?
Does the deed go to the buyer or does the seller keep it. Also does the deed have to reflect the existing lien?
