Posted by tom on September 23, 2003 at 16:38:52:
be in first position on the lot. take a lien on their house as well. get them to sign a defend clause (for mechanics lien). make sure they are well insured and bonded…
tom
Land Contract for to be development land - Posted by MS
Posted by MS on September 22, 2003 at 15:20:50:
I have undeveloped land that is being purchased (presently verbal commitment only). The buyer goal is to build a house on the land. A private contractor will finance the construction effort and install utilities such as septic field, well water, and extend power, gas, telephone utilities, etc. to the new house. The buyer wants me to hold a note on the land until the construction has been completed. Thereafter a mortgage will be in place for the both house and land. In this way they will not have to sell their house and live in apartment for 2 or more months while the house is being built. The title is presently in my name. I will hold the note for 12%. I am not sure what needs to be done so that I am protected against any possible accidents and other items that may make me liable. I am also thinking about offering a subject to on the existing house. I like to identify the liabilities and possible strategies.
Thanks