Posted by David Butler on April 01, 2006 at 16:13:21:
Don’t be offended, but I hope you meant “much” equity?
Okay… getting an “acceptable” generic form for doing Land Contracts in Indiana is easy enough. Here’s one place that offers a nice little package for land contracts, purchase contracts, and lease-option contracts for Indiana. They are only $15 or less.
Now… though I am not familar with Indiana real estate law per se - be aware that it is not the legal [contract] form used that determines the possible difficulties in taking the property back in event of Payor default - all by itself.
Instead it is the state laws of each state that determine what happens in event of Payor default, according to the type of agreement made between the parties.
Be sure you do understand that when you sell a property, the end-buyer in most states is no longer a tenant. Rather, they become the “Equitable” owner, while the seller retains title to the property and is now the “Legal Owner”.
In many states now, “Land Contracts” (aka variously by custom and state as Contract for Deed; Agreement For Deed; Bond for Deed; Agreement for Title; Real Estate Contract; Security Deed), no longer work to allow “simple eviction” (or "Termination of Equitable Title) if much equity at all is built up.
In many states (California for a long time, and Texas more recently if I recall correctly); it is my view that using a “lease-option” agreement to achieve the objective of simple eviction process when low equity buyers are in the mix, may generally be the more sensible way to go. But I don’t know about Indiana.
The key here is learning what the laws of your own state are, so you can decide the best route is for achieving your own objectives. You can often accomplish this by visiting a local title company and asking to speak with their legal department. If unavailable, try asking a title officer. Many will know what you need to know, or they’ll recommend you to an attorney who will.
Hope that helps, and best wishes for your investing efforts!
David P. Butler