I talk every day to people across the country who are relieved by the existence of portfolio loans and who are often a fantastic alternative to buying on a field contract. I closed a lot of portfolio loans to people who thought a land contract was their only option. It is customary for the staggered payments of the purchase price to be similar to high-rise mortgage payments. The amount is often determined according to a mortgage amortization plan. In fact, each staggered payment is a partial payment of the purchase price and a partial interest payment on the unpaid purchase price. This is comparable to mortgage payments, which are a partial repayment of the principal mortgage amount and partial interest. Since the buyer pays more over time for the amount of the loan`s principal, his capital (just title or reasonable interest) increases on the property. If a buyer z.B. a down payment of 2000 USD and borrows 8000 USD for a land worth 10,000 USD, and pays in additional $4,000 of this loan (excluding interest), the buyer has $6,000 of equity in the campaign (or 60% of the fair property), but the seller owns the right of the country, as recorded in the documentation (documents) in a government office until the loan is fully paid. However, if the purchaser makes staggered payments late, the land contract may treat non-payment as a contractual breach and the share capital may be returned to the seller depending on the terms of the ownership agreement. 2. Hire a real estate lawyer – If you are sure that a land contract is the most appropriate choice for you, find and hire a real estate lawyer. Without a good contract, you could get the end of the agreement on the track.

Elements such as title and ownership must be clear. A lawyer will also be able to provide expertise during your negotiations. The Consumer Financial Protection Bureau (CFPB) is considering regulating these real estate sales due to a growing fear that sales of land contracts are contrary to the truth of the right to grant credit. [3] In 2015, Texas law was amended to automatically place the title on the property with the buyer by filing the contract on the county file where the property is located.

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