- 1). Confirm that you are legally able to sell the land by land contract. Land alone cannot be sold on land contract. In order to sell land in Ohio using a land contract, the land must also have a building or mobile home permanently affixed to the land. For purposes of a land contract sale, a mobile home is only considered permanently affixed to the land if the county auditor considers it affixed.
- 2). Locate a potential buyer through advertising the property or through word of mouth. Real estate companies will usually not represent sellers who are selling on land contract; however, you may wish to obtain a current market value by contacting a real estate agent or get an appraisal done by a certified appraiser before advertising the property.
- 3). Negotiate the terms of the land contract. Although the terms of a land contract will vary, common terms that you may need to include are the sales price, down payment amount, monthly payment amount and interest rate. In addition, you will need to decide who will be responsible for payment of the real estate taxes and insurance. Default terms may also be included. A land contract is not the same as a mortgage and therefore does not go through a foreclosure process in the event of a default unless the contract is over five years old or more than 20 percent of the purchase price has been paid.
- 4). Draft the land contract. As with all contracts, a land contract should be reduced to writing to protect both the buyer and seller in the event of a future dispute. Along with all agreed upon terms, the contract should include a legal description, statements regarding any encumbrances to the title and that the seller will provide proof of title.
- 5). Sign and date the contract. Both parties should sign and date the contract in front of a notary public. Although not a legal requirement, the contract should also be recorded at the county recorder's office.
- 6). Transfer the title to the property over to the buyer when the final payment has been made.
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