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With a traditional land contract agreement, the seller maintains ownership of the home until the contract is paid off. Buyers receive equitable title but not the legal title this means that they can benefit from the homes appreciation in value, but cant transfer property ownership.
In a traditional land contract, the seller retains legal ownership of the property until the buyer completes payment. In a wraparound land contract, however, the buyer immediately gains ownership through a warranty deed.
If the buyer defaults on the rent or the land contracts terms, then the buyer forfeits that deposit to the seller and the land contract is void.
Many Land Contracts Are Not Publicly Recorded Buyers often lose down payments and other investments. Land contracts often require balloon payments. Many land contract properties need major repairs and renovations. Most land contract homebuyers pay property taxes, even when their name is not on the deed.
ContractsCounsels marketplace data shows the average land contract drafting costs are $550 across all states and industries.
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Once you sign the land contract, youll have equitable title the right to occupy and later take possession of the property. However, the full title transfer doesnt occur until the loan is fully paid off (unless its a wrap-around contract).
The Land Contract or Memorandum must state that the buyer is responsible for paying the property taxes. The Land Contract or Memorandum must be selling the property.

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