Land Contract Questions

[Juliensiss]

What is the name of your state? Michigan

We are looking at house that the seller is ofering land contract. We own a house currrently and are trying to decided which is the best route. Conventional or LC.

The sellers are an older couple. What happens in a land contract if one or both pass away?

What happens if the seller goes bankrupt?

What happen in the event of a fire?
-If it was electrical, say old wireing in the wall.
- a greese fire on the stove.

Would we need to carry renters insurance or home owners? (for the contents)

Thanks in advance....Dan and Julie

[FarmerJ]

If you have a atty draw up a regular contract for deed or land contract you will may have the same rights as a homeowner , my first and 3rd properties were bought on contract for deed , If the sellers died their heirs would recieve the payments . As a home owner of course you will have to carry home owners Insurance . If the wiring in the home is older just plan for replacement since it will not be the sellers responsibility . If they go bankrupt a BK trustee might force them to use the payments you make to pay obligations if they did a chapter 13 . but that has no bearing on you . You wont regret using a atty to help you with this , I did and every thing was neat and tidy with those 2 properties , try the links up top if you wish to shop for real estate attys in your area . They can help explain the the good and the bad things that can go with buying that way and make sure your interest are served . you wont regret it .

[HomeGuru]

Originally Posted by Juliensiss

What is the name of your state? Michigan

We are looking at house that the seller is ofering land contract. We own a house currrently and are trying to decided which is the best route. Conventional or LC.

**A: conventional what?
****

The sellers are an older couple. What happens in a land contract if one or both pass away?

**A: you deal with the remaining owner or the estate.
*******
What happens if the seller goes bankrupt?

**A: it is up to the BK Trustee.
*******

What happen in the event of a fire?
-If it was electrical, say old wireing in the wall.
- a greese fire on the stove.

Would we need to carry renters insurance or home owners? (for the contents)

**A: homeowners.
****

Thanks in advance....Dan and Julie

**A: you're welcome.

[Juliensiss]

Thanks FarmerJ. Very helpful. We are working with a realtor. Should we also seek out the atrny?

Guru...Conventional Morgauge (can't spell to early) 30Years. fixed.

If it goes to trust/heirs ....the contract terms are binding and can not change until the contract reaches maturity. Is that correct?

Thank You

[HomeGuru]

Originally Posted by Juliensiss

Thanks FarmerJ. Very helpful. We are working with a realtor. Should we also seek out the atrny?

Guru...Conventional Morgauge (can't spell to early) 30Years. fixed.

If it goes to trust/heirs ....the contract terms are binding and can not change until the contract reaches maturity. Is that correct?

Thank You

**A: yes, that is correct. Use the land contract as your last resort.