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  • How To Sell A House That Has Been In A Land Contract

How To Sell A House That Has Been In A Land Contract

Willain DaanDecember 22, 2022December 22, 2022

A land contract is a type of real estate contract in which an individual sells the right to buy the property for a specified price on the promise that the selling party will purchase it at that same price. A land contract is generally used when an individual has found a buyer and wants to sell, but does not want to sell all of their rights as purchaser. You can view here https://www.sandiahomebuyers.com/sell-your-house-fast-in-moriarty-nm/ to read more.

Here are tips to selling a house that has been in a land contract.

  1. Determine what type of a land contract you have.

There are generally two types of land contracts – an installment contract and a retained interest contract.

The installment contract is typical of the land contracts you see used in multiple offer situations. In this case, the selling party agrees to sell their property if they receive a certain price that they specify by a certain date and at the same time agrees to buy back the property if they can pay off the payments made on time at that same price.

In a retained interest contract, the seller retains a portion of the equity in the home if they are unable to sell it on time to the buyer. This may seem like a good deal on paper, but this type of contract can work against you if you cannot find a buyer in time. The problem with this type of contract is that many sellers do not realize until the last minute that they have fallen in love with their home and it could lead to financial hardship and heartbreak.

  1. Understand how to use a title company that is familiar with this type of transaction.

When you work with a title company that does not specialize in land contracts, you are taking the chance that they are using terms and conditions of the title insurance contract that will not apply to your situation. For example, when selling your home, you want a title company who is willing to sign this as part of their service.

  1. Determine what sort of listing agreement you need and what options your listing agent will have in dealing with potential buyers.

Some agents may feel that listing with a real estate agent with whom they already have a relationship will be less stressful for themselves, but it can be more difficult for you in the long run. If a seller wants to sell their house, they want to move quickly.

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