How to Write a Land Contract

A Contract for a Deed, often just called a Land Contract, is an agreement that you can write yourself that lets the buyer of a property or land to buy the land directly from the landowner or property owner and avoid having to go through getting a loan. Obviously, these only occur when both the buyer and seller are willing to make such an agreement. Land Contracts act as an assurance to the buyer that he will retain the property in a lawful manner. In the following, you'll find out what's included in a typical land contract, and thus how to write one.

Although it may seem obvious, the beginning of the contract should include the name of both the buyer and seller of the property. The opening of the contract should also include a full description of the property, as this part often goes into dispute when one party ends up unhappy with the deal. If any other family members like siblings or spouses have a legal claim to the property, their names should be included as well; all of these people must sign the contract too. Next, the terms of the contract need be stated. There's lots of flexibility in this part, but it normally includes a written statement of the offer and indicates that everyone is in agreement to those terms. The land contract also includes the financial terms of the deal, including the down payment and installment plan. These terms can include interest payments, and it's often the case with land contracts that a significant portion of the overall cost comes from the down payment. Next, the seller needs to protect his rights by writing out the default terms for the contract, in essence explaining under what conditions the property will return to him. That's really all you need to include in the contract; just make sure everyone signs on the dotted lines!