We have sold 2 of our resort condo RV land units to the buyer on land contracts and it has worked out great for both parties - the buyer and us the seller. Have another under contract presently. One was a 10 year contract with a 3 year balloon and the other was a 15 year contract with a 3 year balloon. Also sold one condo boat dock unit personally. This saves you the normal 7% realtor etc fee or business added fees which means more bang for your buck!
Gives the buyer a low enough payment that they can still save money to payoff or pay down and have a much lower balance owed after 3 years as land almost always appreciates in value and with a lower owed to true value. Many lending institutions will then be very interested and even give attractive interest rates. Interest rate on the land contract should be specified at the present going rate for loans in the local area. A down payment of 10% of the purchase price is my minimum leaving 90% of the balance on the land contract.
One of my buyers paid 1-1/2 to 2 times the monthly land contract payment amount and saved lots of interest and have a much smaller balance at 3 years and simply paid the balance and got a clear deed. The other paid an amount each month so the entire balance was paid in the 3 years and not only save a lot of interest but had no balloon but still had the protection of a very low monthly payment if for some reason they were unable to continue the 3 year payoff plan they had.
Important:
The buyer becomes the one who pays the property taxes to you and you must furnish a copy of the actual tax bill first and then a copy of the actual paid receipt showing you had paid the tax bill. Also any or all insurance liability desired fees at the time of having the land contract notarized as that's the date of sale. The seller maintains the land deed as collateral until all of the selling price plus interest and up to date property taxes have been paid. Then the deed is quickly transferred to the buyer using a Quit Claim Deed. In most states, the land contract is filed/registered at the county courthouse land dept etc for protection in case of a default as an all party signed and notarized document agreement which is a legal and a recognized transaction.
A wise seller will put in the land contract language what happens and the timing in case of buyer not paying per the agreement they'd signed. Like I had in mine: If 45 days in arrears for payment of all incurred costs agreed upon in this land contract,, all of the buyers personal property must be removed within 15 days and the property left in the same condition as was when the land contract was signed. No utilities or underground items are to be disturbed, altered, or removed. The buyer is still responsible for in the arrears amount owed.
I also state in the land contract document that: I (the seller) must be advised of any and all trees desired to be removed or any land altering actions planned/wanted before and such doing which is not specified in this land contract and must to be OK'd in writing by the seller.
Wise protection from a buyer degrading the land the seller still owns the deed to.
You do not need a lawyer to do this as it's so simple and banks, your bank, or title companies will help you do it right. They often see it as future loan business with gaining a new customer for a low risk loan as an established good credit track record will have been established. Everyone can win and the buyer will mostly!
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Lance Legend TC 11' 4", loaded including 3400 PP generator and my deluxe 2' X 7' rear porch
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A like new '07 Sunline Solaris 26' TT
