Whenever you get engaged in a deal related to the sale and purchase of the real estate it would be better to make a land sale contract to keep you at the safer side. It is an agreement between the seller and purchaser of the real estate. The land sale contract allows the buyer to pay the price of property in a fixed number of installments. In a land sale contract, the seller provides the financing to the buyer for making purchase possible on an agreed upon price. After signing a land sale contract, the buyer becomes eligible for having the possession of the property, but he cannot be entitled with the ownership of the property until the full payment of the price. At the time of agreement, the buyer pays an initial down payment to the seller to confirm the deal. The time period for the payment of installments can be shortened by adding a lump sum payment called a balloon payment due to its large amount.
Land sale contract varies from state to state in its legal status due to the difference in estate laws practiced in the region. As this agreement is between a seller and buyer of the property so it includes all the terms and conditions which agreed upon by both the entities. The payments define in the agreement may contain a fixed amount of interest. After the completion of the installments of the payment, the seller is bound to transfer the title of the property owner to the buyer legally. The land sale contract is unilateral agreement and the seller who is providing the financing to the buyer has the prominent rights. Without the approval of seller contract cannot be assigned to any new buyer. The land sale contract is very useful when a seller wants to sell a property and the buyer has not enough assets or cash to purchase the property.
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