Do not do this on your own the first time. Many forms are freely available on the internet or for low cost from a store that sells contracts. That does not mean you should print them and guess on this. The first few deals that you do you should tell an attorney what you will be doing to make sure you are protected with the right forms and wording.
The title company will be a major help for getting the necessary paperwork in order. Have all documents reviewed by an attorney. The attorney will be able to guide you along so that everything is done correctly. Follow along and take notes and ask questions. After you become familiar with the routine you will not need the attorney if you are doing the same type of deals on a regular basis. Some states require an attorney for closing so check on the procedure in your area.
Local investors or your local real estate investors club should be able to recommend some decent real estate attorneys in your area. Many of these attorneys will provide a free consultation so that you can get a feel for various pricing for different procedures. If you are going to be doing landlording make sure you get an attorney who will help with evictions.
Posted by Shirley B on February 06, 2000 at 15:26:20:
Dear Fellow Investors;
If I buy a piece of property through Lease Option or Land Contract, what type of protection do I have as an investor against an owner who goes “Bankrupt” while I am in the position for future buyout? I guess it would be ok if I had all cash to buy him out, but I don’t, and I have someone in a sandwich L/O position! This is scary! Please Help!