Posted by William Bronchick on April 20, 2000 at 21:41:37:
It can be done that way, but most lenders hold title.
Land Contract - Posted by Scott
Posted by Scott on April 20, 2000 at 15:21:22:
Can someone please give me the quick an’ easy on Land Contracts. What they are, when should you use them???
Re: Land Contract - Posted by Lonnie B. Turner
Posted by Lonnie B. Turner on April 21, 2000 at 24:05:30:
The lender will still be the legal owner of the car but the person that is using the car is called the registered owner.
Lonnie Turner
Re: Land Contract - Posted by Bronchick
Posted by Bronchick on April 20, 2000 at 20:36:14:
A land contract is an installment sales agreement for real estate. Similar to a mortgage, but the title stays in the seller’s name for security on the loan payments. When the loan is paid, the seller delivers title to the buyer. It is the same way it works with car loans; the lender holds title as security, but the borrower has all of the rights to the car.
Re: Land Contract - Posted by Bill (OH)
Posted by Bill (OH) on April 22, 2000 at 07:03:21:
Bill Bronchik is right about how the title works, but another aspect you should look at is how you would get the house back if the buyer stops paying. At law, this is referred to as ‘remedies’. Land Contracts, in many states, require a foreclosure action and that’s time consuming and expensive. However, a lease option is often treated as a rental agreement and to get the buyer out you simply do an eviction–which is much faster and cheaper. So, be sure to check with your states laws and decide which one you want to go with.
Title usually transfers for car loan & not land contract. - Posted by RobertR CO
Posted by RobertR CO on April 20, 2000 at 20:55:15:
Mr Bronchick,
With a car loan, doesn’t title transfer to the buyers name with the lender as lienholder? One difference here is that title stays in the sellers name on a real estate land contract (as you mentioned) until the seller is paid.
Cordially,
RobertR