Land Contract - Posted by Dan

Posted by ScottE on June 01, 1999 at 15:59:53:

Is the rule that you have to find a like kind of property within 45 days, put it under cintract and close within 180 days? Do you need someone (trustee, etc.) to go through?



Land Contract - Posted by Dan

Posted by Dan on May 28, 1999 at 07:00:29:

I have a two family house I would like to sell. Since I have a mortgage on it (non-assumable), and would be liable for some hefty capital gains (owned it over 20 years) I was told a land contract might be a good way to sell it. Any thoughts? Would the bamk have to know? Currently they escrow my taxes and insurance, would I have to get them to quit doing that?

Re: Land Contract - Posted by Bud Branstetter

Posted by Bud Branstetter on May 30, 1999 at 18:22:35:

No, they do not have to quit escrowing your taxes and insurance. The bank does not have to know. The main one to concern yourself with is the buyer. A land contract/contract for deed is inferior to a deed. Depending on the buyer you can do a land contract or a lease option. With the L/O you will have time to identify a new property to move your profits to(if you want) via a 1031 exchange. With the straight installment sale(tax wise) you get your profits over time.