Posted by Brad Crouch on July 22, 2003 at 16:48:43:
> 1. Do I as the purchaser have the tax benefits or
> does the seller keep these in a land trust or land
> contract
The purchaser on a land contract gets the tax benefits. In a land trust, the tax benefits and burdens flow through to the beneficiary.
> 2. What is the difference between a land trust and a
> land contract
A land contract is a way to buy property, while a land trust is a way to hold title to the property you have bought.
> 3. What pitfalls do I risk when purchasing on a land
> contract? On a land trust?
There is no purchasing “ON” a land trust. Other than that, there are “pitfalls” and there are “pitfalls” . . . it depends on what you are comfortable with and how you assess “risk”. I’ll recommend a few courses, in a minute.
> 4. Are there any clauses that should be in a land
> contract or land trust contract that should be there
> to protect me, the buyer?
Strange question. Contracts consist primarily of “clauses” . . . and there is no such thing as a land trust “contract”. You should read the courses I am about to recommend.
> 5. This is the first property I am purchasing this
> way and I don’t know if you know of any good books I
> could get that go into this topic?
Both courses I am recommending are written by an attorney who frequents this site, Bill Bronchick. The names of the courses are: Alternative Real Estate Financing and Step by Step guide to Land Trusts. They are both excellent.
Hope this helps,
Brad