Easy Questions  
Free Legal Documents

Orientation to Land Contracts in Allamuchy, NJ

Orientation to Land Contracts in Allamuchy, NJ


The best investment on earth is earth.
 
- Louis Glickman


Land contracts are useful instruments for sellers who are selling a home and contemplating providing financing to the buyer. The seller may get a better interest rate than rates offered by banks, money market funds or certificates of deposit. It may also help to close the sale.

Land contracts are security agreements between a seller, known as a Vendor, and a buyer, known as a Vendee. The Vendor carries the financing for the Vendee, which may or may not contain an underlying loan. The basic difference between a land contract and a mortgage is the buyer does not receive a deed or clear title to the property until the land contract is paid off.

Other names used to refer to this are land contract, contract for sale, contract for deed, and installment land contract.

Sellers can take steps to protect themselves in a land contract:

• Obtain a Credit Report on the Buyer. If the buyer has filed for bankruptcy, made late payments to other creditors or has no credit, reconsider whether this is a wise transaction

• Get a Title Insurance Policy. Title searches of the public records will also show liens or judgments filed against a buyer. The title company will likely ask for satisfaction of those encumbrances before it will insure the land contract on a title policy

• Ask for a Hefty Down Payment. Buyers are less likely to walk away from a land contract or stop paying on the installment sale contract if the buyer has made a big down payment. The more money invested upfront, the less likely a buyer will default


A valid Land Contract has the following requirements

• Summarize the rights and obligations of the parties

• Identify and be signed by the contracting parties

• State the consideration paid or to be paid

• Describe adequately the property to be sold

Obligations and Rights of the Parties

Expectations from each party should be specifically stated on the land sales contract. For instance, the contract should provide the following:

• Payment of the purchase price and the method and time in which payment is to be made

• Conveyance of the property by deed once the purchase price is paid

• The rights of the parties in the event that one party does not fulfill its obligations


Identity and Signature of the Contracting Parties

The contract for sale is not valid unless it is in writing and signed by the contracting parties. These contracting parties should be identified in the contract.

Consideration

Sufficient consideration should support a valid land contract. Consideration refers to a legal term in which the buyer provides the seller with money or other benefits or legal rights in exchange for the seller's promise to sell the land. In a land sales contract, the consideration is the purchase price, the down payment or the assurance to get financing that will secure the sellers promise to sell.

Description of the Property

The land to be sold must be described adequately. This description includes the size and location of the property that is being bought or sold. The description is enough if the surveyor can find the land using its description.

Things to do before the signing and paying under the land sale contract:

• Do some researches on the title to check if it is clean enough to be purchased.

• Get title insurance to protect you as a buyer from damages or losses from title defects that was not discovered from title research.

• Check if the seller indeed has the authority to sell the land

• Check with the Department of Licensing and Consumer Affairs and the Attorney General's Office to see if any complaints have been filed against the seller of the property in the past

What to do after the land sale contract has been completed

• After payment and requirements have been met, the seller should execute a deed that transfers title of the property

• The deed should properly and adequately describe the property that was sold, identify the buyer, seller, price and restriction or covenants if any

• If the deed is done, it should be filed immediately to the Recorder of Deeds

 
Personalize & Print a Free NJ Last Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free NJ Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Allamuchy, NJ
Cunningham Lisa K
170 Mount Airy Rd
Basking Ridge, NJ 07920
(908) 630-9900
General Practice Attorneys, Attorneys
Patel Milan C
1740 Oak Tree Rd Ste E
Edison, NJ 08820
(732) 452-9888
General Practice Attorneys, Attorneys, Legal Service Plans
Friedman Martin & Beth
25 Stockmar Dr
Basking Ridge, NJ 07920
(908) 204-9642
Attorneys, Legal Service Plans
Shulman William Z
115 River Rd Ste 201
Edgewater, NJ 07020
(201) 313-9300
Attorneys, General Practice Attorneys
Gurnani & Gurnani,
101 State Route 27
Edison, NJ 08820
(732) 494-8900
Attorneys, Labor & Employment Law Attorneys, Immigration Law Attorneys, Corporation & Partnership La
Nieschmidt Law Office
412 Monmouth St
Hightstown, NJ 08520
(609) 426-8807
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  Bank
Bressler Duyk Law Firm
60 State Route 27
Edison, NJ 08820
(732) 494-8555
Attorneys, Business Law Attorneys, Real Estate Attorneys, Litigation & Tort Attorneys, Estate Planni
Legband Donna
93 S Finley Ave
Basking Ridge, NJ 07920
(908) 696-7977
Attorneys, Legal Service Plans
Mavinkurve & Patel Law Offices
44 State Route 27 # D
Edison, NJ 08820
(908) 222-7966
Attorneys, Legal Clinics, Real Estate Attorneys, Divorce Attorneys
Warshaw Law Firm
403 King George Rd Ste 201
Basking Ridge, NJ 07920
(908) 350-7771
General Practice Attorneys, Attorneys
Zelley Frederick B
88 S Finley Ave # G
Basking Ridge, NJ 07920
(908) 766-6666
General Practice Attorneys, Attorneys
Speck Amy
202 2nd Ave
Bradley Beach, NJ 07720
(732) 776-6610
Attorneys
Pasricha Gary S
1794 Oak Tree Rd
Edison, NJ 08820
(732) 593-6200
Immigration Law Attorneys, Patent, Trademark & Copyright Law Attorneys, Attorneys
Hanlon William J
170 Mount Airy Rd Ste F1
Basking Ridge, NJ 07920
(908) 766-6100
Attorneys, Legal Service Plans
Ziegelbaum Joanne E A
107 Manlove Ave # Ae
Hightstown, NJ 08520
(609) 443-5950
Attorneys, Legal Service Plans
Siggelakis Gus T
162 Broad St
Hightstown, NJ 08520
(609) 443-5533
Attorneys, Legal Service Plans
Del Tufo Linda
88 S Finley Ave # D
Basking Ridge, NJ 07920
(908) 766-5200
Attorneys, General Practice Attorneys
Stephen L Klein
17 Hilliard Ave
Edgewater, NJ 07020
(201) 654-4592
Social Security & Disability Law Attorneys,  Attorneys,  Real Estate Attorneys,  Accident & Property
Richford Lisa Law Office
4327 S Broad St
Trenton, NJ 08620
(609) 581-4414
General Practice Attorneys, Attorneys, Legal Service Plans
Asma J. Warsi Chaudry
2 State Route 27 Suite 402
Edison, NJ 08820
(732) 662-4125
General Practice Attorneys, Attorneys
Bonk Family
1941 Oak Tree Rd Ste 201
Edison, NJ 08820
(732) 321-4026
Attorneys, General Practice Attorneys
Gosnell Emily At Attorney Law
614 US Highway 130
East Windsor, NJ 08520
(609) 371-3820
Attorneys, Legal Service Plans
Vallejos Law Ofc & Morales
200 Mercer St
Hightstown, NJ 08520
(609) 371-3600
General Practice Attorneys, Attorneys, Legal Service Plans
Gattoni E RN
300 Undercliff Ave
Edgewater, NJ 07020
(201) 313-3576
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US