In the world of real estate, one of the most important tools is the contract. Where that is true, RealtimeCampaign.com provides the competitive edge needed by most real estate companies to compete in the big market. To be competitive, it’s important to understand how contracts can make or break a company.
As the old saying goes, “there’s more than one way to skin a cat,” meaning sometimes you’ve got to be creative to get the job done, and that’s particularly true in the real estate game. Let’s say, for example, you have a commercial building you want to sell. You could hire a realtor to show it for you, (at a hefty commission to the realtor if it sells,) But, if the property remains vacant for six months or a year until. that’s quite a lot of money flying out of your pocketbook. There’s another way to sell your property, and perhaps do it fairly quickly, and that’s through a land contract, which helps people investing in cities and the local economy.
What is a Land Contract?
In its simplest terms, a land contract is a legally binding agreement where you the seller, and the buyer, agree to sell and buy the property over time, much like you would finance a car. Under the terms of a land contract, the buyer makes a down payment and pays the loan off in installments. You the seller, retain ownership of the property, but under the terms of the contract, the buyer contract entitles them to what is termed an “equitable title.” An equitable title allows the buyer to move into your building and set-up shop and make certain changes necessary to the property. But again, they do not own the property until they have completely paid off the balance of the contract’s sale terms.
The Advantages and Disadvantages of a Land Contract
There are several advantages and some disadvantages of a land contract. And potential sellers should be very aware of both before considering selling any type of property via land contract rather than through a traditional sale. Advantages include selling more quickly, the ability to sell to many people who may not qualify for a bank loan, obtaining a consistent source of revenue for many years, and not having to involve a real estate agent. Disadvantages include needing a lawyer to draft up the contract, having to wait several years for the total payout, and legally retaining title to the property until the contract is complete. Another advantage of owning a land contract is that if you do need to totally sell off, you can contact companies such as Amerinote Xchange which will offer to buy your land contract note. Visit this website to learn more.
Land contracts are a very workable solution for some people wishing to sell a home or commercial business quickly. In some cases, they can sell cheaply. If this is a good option for you, looking into getting a contract now!
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