Land contract: Advise?

[LD1]

Looking for some answers to a few questions from those of you who have ever bought or sold propery via Land contract.

Background: I have to opportunity to buy a piece of property that I want. Direct from owners and no realtors involved. But not wanting/unable to borrow money, and planning on moving, my course of action is to sell my house and take that money to purchase the new house. Seemed pretty simple.

Now here is the delima. I am close (i think) to making a deal with the buyer. From that point 30 days to close and 3-4 days to move out to give buyer possession. So ~33 days to be completely moved out, but with closing being 30 days away, then probably another week or two to get the money, leaves me needing to take possession of the place I am moving to BEFORE I can actually pay for it.

Now this doesnt seem to be a deal breaker with the seller of the place I am moving to. (Known them for years). But want to have my Tee's crossed and I's dotted so to speak.

So my questions concerning a land contract: At what point in time do you normally "close"? When does the title and deed stuff get taken care of? Does that happen when I sign a land contract?? Or does the deed/title stuff get done only once the property is paid in full?

Just wondering what all I need to schedule to get done prior to closing on my house. If only inking a deal on a land contract, great. If I have to sign the deal, contact title company, go through closing and all that stuff too, no big deal. I know I need to contact an attorney to draw up a contract, but its getting late on a friday, have to work tonight, and likely wont get to call anyone til monday. So I figured I'd see how much of my questions I can get answered here.

Thanks

 

[brin]

When your attorney draws up the contract to purchase he / she will include a " Early Possession Clause " in the contract...The contract will state the date of closing but will allow for you to move in early...whatever date you and the seller agree to...The closing can take place before you close on the sale of your house...but you will be committing to the purchase and terms whether your house sells or not...unless the seller agrees to let you move back out if your sale falls through...That would be one rare seller who would allow that...Early possession is never advisable for a Seller...since the buyer can always back out. Just my opinion, not a lawyer but have dealt in Real Estate for years....Good Luck.

 

[newbury]

Lawyers can write it any way. But to be safe all title work, legal description, should be done BEFORE you commit the money. Lot's of unexpected things can occur. For example we were buying what was described as 75 acres, then as 70 acres and the survey turned out to be 65 acres.

 

[dave1949]

Possession and final settlement at closing are common here. The buyer is handed the keys to an empty house and the seller has the proceeds of the sale. That would reduce your time overlap concerns.

It is possible to have two closings (sell, buy) on the same day although it would certainly be easier on you to close on the new place 2-3 days ahead of your sale. If not, then a night in a motel or with friends, and your stuff on a moving truck overnight is a possibility. Some people make arrangements to hold some stuff for a day or two in an outbuilding on the sold property after closing. Conversely, you could ask the same (storage ahead of the sale) from the seller of the place you are moving to.

 

[murphy1244]

Good luck on your New house LD1.

 

[RickB]

I'm not qualified to advise you on this. I will wish you the best of luck and hope you find accurate, qualified advise to make the transition smooth.

 

[randy41]

A 'land contract' (sometimes known as a “contract for deed,” "agreement for deed," "land installment contract" or an “installment sale agreement”) is a contract between a seller and buyer of real property in which the seller provides financing to buyer to purchase the property for an agreed-upon purchase price and the buyer repays the loan in installments. Under a land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership. wikipedia.

 

[havetractor]

Evening LD1,
As I read, looks like the answers are simple. Rent the house you are moving to, for the month you need to occupy it before settlement on your house.

 

[SPIKER]

Havetractor has it good, write up a month to month rental agreement to cover the early move in date with a buy/price clause that can/could include the price of the buy and rent for the month that comes off the final buy price.


I have bought AND sold land contract not hard to do, the title search CAN be done ahead of time & suggested that you get that stared ASAP anyhow as it can take MONTHS to get one done (or days depending.)

I bought land contract (from family) and sold back to other family. Traditionally the seller holds all the cards, retains the title, tax deduction, and makes sure the buyers pays for & maintains insurance etc.

having a written contract is key to protect all members (KEEP) a copy or two in different places just in case... Can use a realtor or lawyer (or program) to make up the land contract & have it notarized & file a copy at the auditors or clerk of courts to make it official.


Mark

 

[hr3]

Evening LD1,
As I read, looks like the answers are simple. Rent the house you are moving to, for the month you need to occupy it before settlement on your house.

That's the way I would do it too !!!