Land Contract
I have posted here before about this particular house and I appreciate all the advice, but we finally have a legally binding offer so I have another question. The selling price is $76,500 and the buyer will give us $10,000 down and the rest in 6 months. He will pay $600.00/month until he pays the balance. I have talked to an attorney and he said to treat the $600.00/month like rent, not payments on the loan. Is that o.k. to do it like that? He would pay $10,000 down and $66,500 in 6 months with $600/month for the 6 months. Sounds great to me, but how do you structure that and is it o.k. to do it like that?
Thanks.
The eadiest way would be to do a lease option with 10K down, 600/mo rent (no rent credit for the 600/mo) and the balance due in 6 months.
Sam
Does anyone know if I would need to put this $10,000 in escrow? What would be the normal default provision on a contract like this? I would really prefer not to have the $$ in escrow, but if he defaults, how much would be the normal amount to be returned to him?
Thanks
No it would be a $10,000 option payment, rent of $600/mo with no rent credit going towards purchase price and they have the OPTION to purchase within say... 9 months(but most likely he will do it in 6) at the balance. If he ends up not being able to pay the balance, you do not have to return the $10,000 or rent.
Quote:
On 2004-11-18 16:04, heathermarie wrote:
Does anyone know if I would need to put this $10,000 in escrow? What would be the normal default provision on a contract like this? I would really prefer not to have the $$ in escrow, but if he defaults, how much would be the normal amount to be returned to him?
Thanks