When it comes to purchasing property, land contracts are alternatives to traditional financing. Unlike mortgages, which are funded by banking institutions, these are funded by the seller. In other words, the buyer makes payments directly to the seller instead of borrowing the funds to pay for the property outright. If you’re considering buying or selling Wisconsin real estate with a land contract, here’s what you should know. 

What to Include in a Land Contract

Generally speaking, the agreement should address the purchase price and down payment for the home, as well as the interest rate, frequency of installments, maturity date, tax and insurance obligations, and any applicable restrictions. There should also be terms regarding default remedies, cancellations, and breaches of contract in case problems arise down the road.

Why Land Contracts Are Appealing 

Land contracts bring benefits to both sellers and buyers. Sellers who are willing to finance the property themselves may have an easier time finding a buyer because their pool of applicants is not limited to those who qualify for financing. With this flexible arrangement, a seller may also be able to secure a higher price for their property.

If you’re a buyer, entering into a land contract may give you more negotiating power. Instead of dealing with a major bank, which could be unflinchingly rigid, you’ll negotiate your purchase price and interest rate with a human being. This also means your down payment may be more flexible. 

If you need help drafting a land contract, turn to Alan A. Panek Law Office, S.C. Located in Wisconsin Rapids, WI, this firm was founded in 2002. This attorney offers legal counsel in a range of areas to people throughout Wisconsin, including Wood, Adams, and Portage counties. Learn more about his practice areas online or call (715) 421-4900 to schedule a consultation.