Article:
Legally Speaking: What to do when a land contract goes south
(OAR Buzz, Feb. 23, 2015)
Introduction
As a result of current market conditions, REALTORS are increasingly faced with two obstacles: sellers who are unable to sell their property and buyers who are unable to qualify for a loan because of a recent bankruptcy, foreclosure, or other credit problems. A potential solution for both of these problems may be leasing the property or seller financing. Lease purchase agreements, lease options, purchase money mortgages and land installment contracts are all types of arrangements that potential parties to a real estate transaction may consider.
Because many REALTORS have little, if any, experience with these types of transactions, it is important for them to familiarize themselves with the legal issues involved so they can properly represent the best interests of their clients. The purpose of this White Paper is to provide a brief overview of some of these legal considerations.
Index
- Leasing property
- Lease with option to purchase
- Lease purchase agreement
- Purchase money mortgage
- Land installment contracts
- Conclusion
Forms:
- Residential Lease Worksheet
- Option to Purchase Contract Worksheet
- Lease/Purchase Contract Worksheet
- Land Installment Contract Worksheet
Created: Ohio REALTORS 2012