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A land contract is a written legal agreement used to purchase real estate, such as a house, commercial building, apartment, and vacant land. Similar to a mortgage, these documents are a form of financing, whereby the purchasing party makes payments to the seller directly, rather than to a bank or lender until the loan is paid in full. If you are involved in a land contract transaction, retaining the services of a commercial and residential real estate attorney will prove beneficial.

Here are a couple of ways an attorney can help with your land contract:

Negotiations & Drafting

land contractThough most people feel comfortable negotiating face-to-face, the terms of a transaction must be properly documented to be legally binding. An attorney will negotiate fair terms on your behalf while drafting a land contract that adheres to all state laws and addresses specific problems that may affect property use in the future.

Equally important is explaining your responsibility and risk as a seller, as they are responsible for more than receiving payments. These individuals also assume “bank” duties to monitor the condition of the collateral, or real estate sold, and the cost and effort to collect and foreclose if the loan transaction goes bad.

Title Insurance

Title insurance review is another important service provided by real estate attorneys. The purpose is to ensure that the property being purchased is free of any encumbrances, such as judgments or liens. The results will reveal whether the seller has the legal right to enter into a land contract.

Receiving a title insurance commitment does not guarantee a piece of real estate is “free and clear." To the contrary, each insurance policy has exceptions to coverage. It is the purchaser's responsibility to object to defects and demand they be remedied. A residential and commercial real estate lawyer will be able to review and explain these exceptions, so you know the risks and title quality for the land you are purchasing.

 

From drafting land contracts to general business matters, Alan A. Panek Law Office, S.C., provides clients with professional, personalized legal counsel across a variety of areas. Whether you are involved in a complex real estate transaction or require estate planning services, you can depend on him for the advice and representation you deserve. Visit him online or contact his Wisconsin Rapids, WI, office at (715) 421-4900 to set up a consultation.

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