Selling Land Contracts

Written by Patricia Skinner
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What is a land sale contract? A land sale contract conveys title to property after purchase. Often purchase is made through monthly payments and title is not conveyed until all of the payments are made.

Brokers of mortgages and trust deeds purchase these land sale contracts and mortgages independently of the land itself. The purchase puts cash in the hands of the seller, yet still conveys the property to the buyer. The practice of selling land contracts is an important tool for the real estate agent, as well as mortgage brokers, attorneys, and financial planners.

Real estate agents may find that selling land contracts can finalize potential transactions that had been floundering because the buyer or the seller was unable to fulfill certain requirements. Finding a mortgage note buyer can streamline a difficult transaction. They can employ creative financing strategies and considerably broaden the market of potential buyers.

Financial Strategies For Real Estate Sales

Accountants and financial planners may also be interested in selling land contracts. Attorneys who are involved with estate planning, probate or divorce can work with a private mortgage buyer to dispose of property quickly and easily. Financial planning may require the tax benefits of selling off only part of the mortgage note and keeping the rest as an investment, so that the seller's income is distributed over a period of years.

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