Book Chapter

5 min read

Summary Checklist

How much is the purchase price?
Does the buyer have to pay any money upfront?
How long does the land contract run?
What are the terms of the payments?
- How often are payments made?
- Will interest be charged and, if so, how much?
- Will there be a balloon payment?
- Is prepayment allowed?
- How exactly must payments be made?
What happens if the buyer fails to make payments on time?
What happens to the improvements made by the buyer if the contract is terminated?
Who pays the property taxes?
Who pays for insurance?
Who is responsible for damage to the property?
What happens if someone is injured on the land or equipment is stolen?
What happens if the land is condemned or the government takes the land?
What happens if a party doesn’t pay the bills when they’re supposed to?
Can the buyer sale or lease the land to someone else?

Checklist with Explanations

Checklist: Negotiate and Create a Land Contract

Land Contract Toolbox