land contracts in ohio

what is a land contract, and what specifically should one consist of?

[HomeGuru]

Do a search using words: land contract, installment contract, agreement for deed, agreement of sale....
It is a method of financing whereby the seller sells the property by providing the financing. The seller retains legal title and the buyer holds equitable title.

another ques. If for instance , a seller will by land contract , allow the use of the home for 1 yr., then to take over with an aproved mortgage, over the course of that year is the current mortgage being paid by the owner? Is the tennant building the equity in the home, and does any money paid over that period go towards the purchase price??? Thankyou ,by the way

[HomeGuru]

[quote]Originally posted by me michael
[b]another ques. If for instance , a seller will by land contract , allow the use of the home for 1 yr., then to take over with an aproved mortgage, over the course of that year is the current mortgage being paid by the owner?

**A: the mortgage is being paid by the indivdual that holds the mortgage which is the Seller. The Seller actually uses the Buyer's installment contract payments to pay the mortgage.
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Is the tennant building the equity in the home, and does any money paid over that period go towards the purchase price??? Thankyou ,by the way

**A: the Buyer would not be a tenant but a Buyer/Vendee on a land sales contract.
The money paid towards down payment and the monthly payemts are negotiated as equity. Usually, the down payment creates equity and the monthy payment goes towards interest, property taxes etc. It all depends on how the deal is structured. Every deal is different and each sale could have different scenarios.