Easily Remove Line in the Land Contract

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How to Remove Line in the Land Contract

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hello im robert todd and im here to talk about how to close a land contract and first of all a land contract is really nothing more than an installment contract to purchase land what happens in a land contract is the seller the owner of the land basically does the financing they enable the buyer to pay the land contract over a period of time such as 30 years but the difference is the seller the owner doesnt want to be financing the sale of the land over a 30-year period so even though the payments are initially determined as if you were paying over 30 years at the end of a time certain such as five years a balloon becomes due and owing meaning the other 25 years worth of payments are due at that point in time the buyer is probably going to have to finance the balance but the good news is at that point the buyer has made five years worth of payments and has a substantial amount of equity in the land and should be able to obtain financing easier im robert todd and thank you for watch

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What is a common document used to eliminate the lien of a land sale contract?

Both title companies and mortgage lenders will often require an affidavit of title as part of the sale of real property. If there is a lien on the title, the seller can choose to have the lien removed by satisfying the obligation prior to sale.

What does remove contingency mean?

Removing the loan contingency means you agree to pay the purchase price for the property even if you dont have a home purchase loan. You should only remove the loan contingency in a purchase agreement if youre a cash buyer or are absolutely certain you will obtain financing.

What does having a contingency mean?

A contingency is a clause that buyers include when making an offer on a home that allows them to back out of buying the house if the terms of the clause arent met. Without a contingency in place, buyers risk losing their earnest money deposit if they decide not to purchase the home after making an offer.

What does no contingency mean when selling a house?

A no-contingency or non-contingent offer means that a buyers offer has been accepted by the seller and there are no further contingencies to be met in order for the house to be sold.

What does contingency mean in real estate?

A property listed as contingent means the seller has accepted an offer, but theyve chosen to keep the listing active in case certain contingencies arent met by the prospective buyer. If a property is pending, the provisions on a contingent property were successfully met and the sale is being processed.

How do you get out of a contingency contract?

Kick-Out Clause If another qualified buyer steps up, the seller gives the current buyer a specified amount of time (such as 72 hours) to remove the house sale contingency and keep the contract alive. Otherwise, the seller can back out of the contract and sell to the new buyer.

What is a kick-out clause?

A kick-out clause allows home sellers to continue showing and accepting offers even after accepting a contingent offer. A kick-out clause is a provision in a homes sales contract that allows sellers to accept a contingency while still showing their home in hopes of receiving a non-contingent offer.

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