Land Contracts In Ohio
Our real estate attorneys at Neiman Law help clients in Columbus and its surrounding communities and throughout Ohio with all sorts of real estate legal matters. If your business is contemplating a land contract, our lawyers can offer counsel and advice on how best to proceed.
What Is A Land Contract?
In a land contract arrangement, also sometimes called an installment land contract, a seller promises to convey the title of a property at some point in the future. In exchange, the buyer promises to make payments over a specified time.
The seller retains the title until the terms of the agreement have been satisfied. Essentially, in a land contract, the landowner is financing the seller’s ability to purchase the property. According to Ohio real estate laws, the land must be in Ohio, and the property must contain a dwelling, home or structure.
Executing A Land Contract In Ohio
In Ohio, the parties agree on the terms of the purchase agreement, such as the purchase price, the payment terms and other details for the sale of the property. As soon as the agreement is reached and the contract is signed by both parties, the land contract is recorded and the buyer can take possession of the property.
The buyer will typically make monthly installment payments for the designated period of time until the purchase price has been satisfied. The seller retains the title to the property until the payment terms have been satisfied.
If the buyer defaults on their payments, they could forfeit their legal rights to the property and prior payments. A seller will have the option to commence forfeiture or foreclosure proceedings.
Using A Land Contract For Commercial Real Estate
A land contract can be attractive to commercial real estate investors for several reasons. A commercial land contract usually requires less capital investment for a down payment. This can make a land contract an attractive option when land values are high and prohibitively expensive.
Likewise, there is often less involvement with banks and lenders which makes financing a commercial land contract easier to obtain than other purchasing options. In addition, once the contract is executed and signed, the buyer can start using the property. There are also tax advantages involved with using a land contract in lieu of traditional lending and financing arrangements.
Schedule A Consultation With A Real Estate Attorney
Our real estate attorneys are available for consultation appointments. To schedule an initial consultation, contact our Columbus office by calling 614-682-6999 or by sending an inquiry through our contact form.