Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

wrote:

I have a relative who is going to sell a home on a land contract.

Presumably you mean in the US. Usenet is a global medium.

The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method?

You definitely don't need a real estate agent, although one might be able to
refer you to a good real estate lawyer. I had a grandmother (not a lawyer or
even close to one) who manged her own land contracts, but I wouldn't recommend
it.

If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition).

Any competent general purpose lawyer should be able to manage the transaction,
but you might ask what experiences they have in conveyances and land contracts.

Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

Doesn't have to be, but that makes things somewhat easier for the seller. The
contract gets recorded in the county where the property is located. The signing
can occur anywhere.

On Thu, 06 Oct 2011 20:53:36 -0600, Robert Neville
wrote:

wrote:

I have a relative who is going to sell a home on a land contract.

Presumably you mean in the US. Usenet is a global medium.

The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method?

You definitely don't need a real estate agent, although one might be able to
refer you to a good real estate lawyer. I had a grandmother (not a lawyer or
even close to one) who manged her own land contracts, but I wouldn't recommend
it.

If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition).

Any competent general purpose lawyer should be able to manage the transaction,
but you might ask what experiences they have in conveyances and land contracts.

Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

Doesn't have to be, but that makes things somewhat easier for the seller. The
contract gets recorded in the county where the property is located. The signing
can occur anywhere.

Yes, this is in the USA. Thanks for the help.

I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?


*Ideally the buyer and seller will each have their own attorney to represent
their respective interests. It is most important for the buyer to have an
attorney, however the seller doesn't want something from the transaction to
come back and bite them in the tush afterwards.

I would hire an attorney located in the county that the property is located
and who has experience in real estate transactions. Be wary of attorney's
who advertise low rates. There may be a lot of "Extras" tacked on that are
standard procedure for any real estate transaction. Also, find an attorney
who returns phone calls in a timely manner.

On Oct 7, 7:20*am, "John Grabowski" wrote:
I have a relative who is going to sell a home on a land contract. *The
price and terms have been discussed with the buyer. *Now the paperwork
needs to be filled out and legalized. *Who who do they go to to do
this legal paperwork? *I assume it's either a realtor or lawyer. *But
which is the preferred method? *If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? *(definition). *Also, the home to be sold and home of the
seller are in two different states. *Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

*Ideally the buyer and seller will each have their own attorney to represent
their respective interests. *It is most important for the buyer to have an
attorney, however the seller doesn't want something from the transaction to
come back and bite them in the tush afterwards.

I would hire an attorney located in the county that the property is located
and who has experience in real estate transactions. *Be wary of attorney's
who advertise low rates. *There may be a lot of "Extras" tacked on that are
standard procedure for any real estate transaction. *Also, find an attorney
who returns phone calls in a timely manner.

In some states it's routine to do real estate transactions
without an attorney, using for example a title company
to do the closing. Here in NJ, sales are almost always
handled by an attorney, which I would think is the safest
and best way for most people. You really should have
someone that is looking out for YOUR interests when
writing the contract and making sure it's all done
correctly.

I'd ask around for recommendations for attorneys.
Failing that, the local bar association probably has
a website with lawyers listed. A general purpose
lawyer typically handles real estate. If you look
in listings of lawyers, their websites etc, you'll
also find some ones that will list real estate as
one of their specialties.

The deal and closing could be held in either state.
Their would be advantages and disadvantages to
using one in one state vs the other, eg how
convenient it is for the buyer/seller, familiarity
with the laws in the state the property is in, etc.
I'd probably go with a lawyer in the state the
property is located in, unless a local lawyer
you already have is familiar with the other state.

wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method?

Lawyer.

If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition).

Get a name from a satisfied client (friend, neighbor, relative). Contact
him. If he doesn't do real estate stuff, he can refer you to another.

Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

Um, the "transaction" can be done anywhere. The final results will have to
be filed in the county where the property is located.

Note: A "land contract" is superior - from the seller's perspective - to an
outright sale with a mortgage. In a "land contract", the seller retains
ownership of the land until the "loan" is paid. If that's really the
mechanism by which the sale you mentioned is going to take place, neither a
lawyer nor a real estate agent is necessary inasmuch as title to the
property is not changing.

Robert Neville wrote:
wrote:

I have a relative who is going to sell a home on a land contract.


Any competent general purpose lawyer should be able to manage the
transaction, but you might ask what experiences they have in
conveyances and land contracts.

I definitely do not agree with that. It would be important to use an
experienced real estate attorney -- meaning one who specializes in real
estate transactions. A general practice who does not specialize in real
estate would be a mistake.

wrote:
On Oct 7, 7:20 am, "John Grabowski" wrote:
I have a relative who is going to sell a home on a land contract.
The price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I know
lawyers specialize in different matters, what would be the type of
lawyer needed? (definition). Also, the home to be sold and home of
the seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home
to be sold?

*Ideally the buyer and seller will each have their own attorney to
represent their respective interests. It is most important for the
buyer to have an attorney, however the seller doesn't want something
from the transaction to come back and bite them in the tush
afterwards.

I would hire an attorney located in the county that the property is
located and who has experience in real estate transactions. Be wary
of attorney's who advertise low rates. There may be a lot of
"Extras" tacked on that are standard procedure for any real estate
transaction. Also, find an attorney who returns phone calls in a
timely manner.

In some states it's routine to do real estate transactions
without an attorney, using for example a title company
to do the closing. Here in NJ, sales are almost always
handled by an attorney, which I would think is the safest
and best way for most people. You really should have
someone that is looking out for YOUR interests when
writing the contract and making sure it's all done
correctly.

Just a note about New Jersey (which is where I am located). There are
actually two different "typical" systems or "standard practices" in New
Jersey regarding real estate transactions. In North Jersey the closings are
almost always handled by an attorney and usually conducted in the attorney's
office. In South Jersey, many (or most?) closings are handled by title
companies, often in the title company office, and people may or may not have
attorneys representing them in the transaction. That is what the "custom"
is in New Jersey.

In this case in particular, especially since the plan is to sell using a
land contract and the seller is out of state, using an attorney would be
important.

On 10/6/2011 7:48 PM, wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?


State real estate laws vary. Sometimes you need a lawyer and some times
not. You could enlist a realtor that knows these laws and have him draw
up the contract and have it executed. They might do this for say 1% of
the sales price.

Lawyers usually have set fees, not dependent on property price.
You should get a lawyer that specializes in real estate and realtor or
any lawyer could tell you who they are.

wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

If you would be willing to post what state this is in, and maybe even the
location (such as town or county) of the property, people here may be able
to suggest an experienced real estate attorney from that area.

Definitely do not use a Realtor or real estate agent since they do not
function as attorneys in real estate transactions and they do not represent
your legal interests. Their job is to match buyers and sellers and they
only get a commission if a sale goes through. They do not get any
commission if they tell you that the deal is not in your best interests and
convince you not to do the sale. An attorney represents you and your legal
interests, and the attorney gets paid even if he recommends that you do not
do the deal -- which sometimes happens.

It is important to use an experienced real estate attorney and not a general
practice attorney. There is no difference in cost. This would be
especially important in a transaction where you want to do a land contract
or other type of seller financing option, but it is also important in any
real estate sale -- even a traditional transaction.

Get an attorney who is located where the property is located, and (to
repeat) get one who specializes in real estate. He/she can handle the whole
thing for you from the state where the property is located.

Think very carefully before you go ahead and do a "land contract" type of
sale. Depending on the circumstances, there can be a variety of other ways
to handle the sale with "terms" if that is what you need to do or want to
do. On the other hand, there may be specific circumstances involved here
that are the reason that you want to do a land contract, and reasons why it
may make sense in your particular case.

Good luck.

wrote in message
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract.
The
price and terms have been discussed with the buyer. Now the
paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer.
But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home
to
be sold?


I would go to a title company and ask if they could handle everything.
Otherwise a realtor and a title company.

The reason I say that is there are ALL SORTS of forms which need to be
completed these days for a home sale. Things relating to lead based
paint in the house, seller needs to list any known problems or defects
with the house or the buyer can come back and sue, and all sorts of
other forms for silly stuff! I just sold a house and I had to state
how much noise was in the area (along with all the other crap)...

Anyway there are various state/federal laws that these forms be
completed. A title company and/or realtor does this everyday and would
know best what all forms need to be completed so everything is
"legal".

Frank wrote:
On 10/6/2011 7:48 PM, wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I
know lawyers specialize in different matters, what would be the type
of lawyer needed? (definition). Also, the home to be sold and home
of the seller are in two different states. Am I correct to assume
the transaction has to be done in the same state and county of the
home to be sold?


State real estate laws vary. Sometimes you need a lawyer and some
times not. You could enlist a realtor that knows these laws and have
him draw up the contract and have it executed. They might do this
for say 1% of the sales price.

Please do yourself a favor and do not have a Realtor or real estate broker
draw up the contract or paperwork. They are not attorneys. They serve a
very good function in selling properties, matching up buyers and sellers,
helping to negotiate a deal between buyers and sellers etc. But they are
not your lawyer and, since you already have a buyer and already have at
least an initial understanding between the buyer and seller about the terms
of the sale, you do not need a Realtor. You need an experienced real estate
attorney.

Lawyers usually have set fees, not dependent on property price.
You should get a lawyer that specializes in real estate and realtor or
any lawyer could tell you who they are.

I agree.

On Oct 7, 8:55*am, "Ron" wrote:
wrote:
On Oct 7, 7:20 am, "John Grabowski" wrote:
I have a relative who is going to sell a home on a land contract.
The price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I know
lawyers specialize in different matters, what would be the type of
lawyer needed? (definition). Also, the home to be sold and home of
the seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home
to be sold?

*Ideally the buyer and seller will each have their own attorney to
represent their respective interests. It is most important for the
buyer to have an attorney, however the seller doesn't want something
from the transaction to come back and bite them in the tush
afterwards.

I would hire an attorney located in the county that the property is
located and who has experience in real estate transactions. Be wary
of attorney's who advertise low rates. There may be a lot of
"Extras" tacked on that are standard procedure for any real estate
transaction. Also, find an attorney who returns phone calls in a
timely manner.

In some states it's routine to do real estate transactions
without an attorney, using for example a title company
to do the closing. * Here in NJ, sales are almost always
handled by an attorney, which I would think is the safest
and best way for most people. *You really should have
someone that is looking out for YOUR interests when
writing the contract and making sure it's all done
correctly.

Just a note about New Jersey (which is where I am located). *There are
actually two different "typical" systems or "standard practices" in New
Jersey regarding real estate transactions. *In North Jersey the closings are
almost always handled by an attorney and usually conducted in the attorney's
office. *In South Jersey, many (or most?) closings are handled by title
companies, often in the title company office, and people may or may not have
attorneys representing them in the transaction. *That is what the "custom"
is in New Jersey.

In this case in particular, especially since the plan is to sell using a
land contract and the seller is out of state, using an attorney would be
important.- Hide quoted text -

- Show quoted text -

Interesting the things you learn. So, even in South Jersey
they use title companies. I know that's the practice in
CA for example, but didn't know it was going on here too.
I'm in south central NJ, near the border of Ocean County
and here it's routinely done by lawyers.

One thing I think we's all agree on is that if there is any
reason to be especially concerned about a deal, if it is
in any way not straightforward, etc, then I'd always go
with a lawyer. I'd also get the total cost nailed down
upfront. A friend did a closing a few years ago with a
lawyer who I believe was unethical. He asked her fee
for doing the closing and she told him $1100. In the
middle of the deal, she made a comment about her
"paralegal" doing some of the work and told him
"Oh, and you're paying for that too...." He didn't challenge
her on it and wound up paying another few hundred.

But, maybe karma goes around. After closing, months
later, he was reviewing water bills and saw that he
was billed $700 for water that was before closing.
What had happened was the closing was set for a
certain date, but did not happen because the mortgage
company backed out at the last minute. That's
another story of totally unethical behavior. So the
closing didn't occur for another month or so, in
which time the loons were watering the lawn every
day. The paralegal did not bother to get an updated
water bill for the closing.

It took about a year of hounding the lawyer, but
finally he got his $600 from her. She may have
gotten it from the sellers, but good chance she
didn't. They had moved many states away and
were already having some legal troubles of
their own....

On Oct 7, 9:14*am, "Ron" wrote:
Frank wrote:
On 10/6/2011 7:48 PM, wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. *Now the
paperwork needs to be filled out and legalized. *Who who do they go
to to do this legal paperwork? *I assume it's either a realtor or
lawyer. *But which is the preferred method? *If it's a lawyer, I
know lawyers specialize in different matters, what would be the type
of lawyer needed? *(definition). *Also, the home to be sold and home
of the seller are in two different states. *Am I correct to assume
the transaction has to be done in the same state and county of the
home to be sold?

State real estate laws vary. *Sometimes you need a lawyer and some
times not. *You could enlist a realtor that knows these laws and have
him draw up the contract and have it executed. *They might do this
for say 1% of the sales price.

Please do yourself a favor and do not have a Realtor or real estate broker
draw up the contract or paperwork. *They are not attorneys. *They serve a
very good function in selling properties, matching up buyers and sellers,
helping to negotiate a deal between buyers and sellers etc. *But they are
not your lawyer and, since you already have a buyer and already have at
least an initial understanding between the buyer and seller about the terms
of the sale, you do not need a Realtor. *You need an experienced real estate
attorney.

Lawyers usually have set fees, not dependent on property price.
You should get a lawyer that specializes in real estate and realtor or
any lawyer could tell you who they are.

I agree.- Hide quoted text -

- Show quoted text -

I'm pointing out that licensed realtors know the state requirements
and it is one route that can be taken.
Having had experience here in Delaware, I'd go right for the lawyer
but in some states you can probably get by without either. Depends
how much work you want to do yourself. I know somebody here filing
for divorce without a lawyer.

wrote in message
...
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?



Pretty sound advice thus far thought some in tinted just a bit here and
there.

Now for the bad news. Many states mine included have recently adopted a "no
owner financed sales" without a mortgage license for property that is not
the sellers primary residence.

That sucks really big time but it is the law. That is the first hurdle to
overcome. The requirements to become licensed are quite burdensome IMO.


--
Colbyt
Please come visit http://www.househomerepair.com

wrote:
On Oct 7, 8:55 am, "Ron" wrote:

Just a note about New Jersey (which is where I am located). There are
actually two different "typical" systems or "standard practices" in
New Jersey regarding real estate transactions. In North Jersey the
closings are almost always handled by an attorney and usually
conducted in the attorney's office. In South Jersey, many (or most?)
closings are handled by title companies, often in the title company
office, and people may or may not have attorneys representing them
in the transaction. That is what the "custom" is in New Jersey.

Interesting the things you learn. So, even in South Jersey
they use title companies. I know that's the practice in
CA for example, but didn't know it was going on here too.
I'm in south central NJ, near the border of Ocean County
and here it's routinely done by lawyers.

I almost wrote South "and East" Jersey because I know that Ocean County
tends to follow the North Jersey custom of only using attorneys to conduct
closings and not title companies. I am in Camden County and title companies
is the way it is usually done here as well as in Burlington, Gloucester,
Atlantic, Salem, Cumberland, and Cape May counties.

One thing I think we's all agree on is that if there is any
reason to be especially concerned about a deal, if it is
in any way not straightforward, etc, then I'd always go
with a lawyer. I'd also get the total cost nailed down
upfront. A friend did a closing a few years ago with a
lawyer who I believe was unethical. He asked her fee
for doing the closing and she told him $1100. In the
middle of the deal, she made a comment about her
"paralegal" doing some of the work and told him
"Oh, and you're paying for that too...."

I agree that your friend appears to have been deceived by the attorney who
quoted a flat fee and then upped the cost later on by saying her paralegal
was going to do some of the work. Attorneys in New Jersey are supposed to
have a signed fee agreement with their clients up front although they don't
always do that. Most real estate attorneys in South Jersey state up front
what their flat fee is for a routine real estate transaction, usually from
review of the agreement of sale and documents through the actual closing.

Frank wrote:
On Oct 7, 9:14 am, "Ron" wrote:
Frank wrote:
On 10/6/2011 7:48 PM, wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract.
The price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized.

Please do yourself a favor and do not have a Realtor or real estate
broker draw up the contract or paperwork. They are not attorneys.
They serve a very good function in selling properties, matching up
buyers and sellers, helping to negotiate a deal between buyers and
sellers etc. But they are not your lawyer and, since you already
have a buyer and already have at least an initial understanding
between the buyer and seller about the terms of the sale, you do not
need a Realtor. You need an experienced real estate attorney.

I'm pointing out that licensed realtors know the state requirements
and it is one route that can be taken.

Well maybe, maybe not. Realtors are not attorneys and they are not allowed
to practice law. Drawing up the legal documents for a client is considered
practicing law -- EXCEPT -- there is an agreed-upon waiver of this that was
established in South Jersey in the feud on this topic between attorneys and
Realtors. The attorneys agreed that Realtors could use a previously-vetted
standard legal form for the Agreement of Sale (AOS) and could prepare the
AOS for their clients if they used that form. Included in that form in bold
print is an advisory that the parties should seek legal counsel and that the
form also includes a 3-day Attorney Review Period. All parties have a 3-day
period of time after all parties have signed the documents to have their
attorney review the documents and either void them or suggest changes etc.
Even though all parties had signed, the documents do not become enforceable
until after the 3-day attorney review period.

Colbyt wrote:
wrote in message
...
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I
know lawyers specialize in different matters, what would be the type
of lawyer needed? (definition). Also, the home to be sold and home
of the seller are in two different states. Am I correct to assume
the transaction has to be done in the same state and county of the
home to be sold?



Pretty sound advice thus far thought some in tinted just a bit here
and there.

Now for the bad news. Many states mine included have recently
adopted a "no owner financed sales" without a mortgage license for
property that is not the sellers primary residence.

I think that comes from a recent federal law and there are waivers and
exceptions to that requirement. One is that if an individual does less than
3 such transactions per year (I think that is the standard -- I would have
to check) he/she is exempt. The law was designed to protect buyers from
investors who buy lots of properties (sometimes "subject to" the existing
mortgage -- a mortgage takeover ) and then flipping them to buyers who may
not be qualified by taking back owner financing. In other words, they were
selling properties on terms that the buyers didn't really have the
qualifications and income to meet and then those buyers later lost their
homes in foreclosure.


That sucks really big time but it is the law. That is the first
hurdle to overcome. The requirements to become licensed are quite
burdensome IMO.

"Ron" wrote in message ...
Colbyt wrote:
wrote in message
...
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I
know lawyers specialize in different matters, what would be the type
of lawyer needed? (definition). Also, the home to be sold and home
of the seller are in two different states. Am I correct to assume
the transaction has to be done in the same state and county of the
home to be sold?



Pretty sound advice thus far thought some in tinted just a bit here
and there.

Now for the bad news. Many states mine included have recently
adopted a "no owner financed sales" without a mortgage license for
property that is not the sellers primary residence.

I think that comes from a recent federal law and there are waivers and
exceptions to that requirement. One is that if an individual does less
than 3 such transactions per year (I think that is the standard -- I would
have to check) he/she is exempt. The law was designed to protect buyers
from investors who buy lots of properties (sometimes "subject to" the
existing mortgage -- a mortgage takeover ) and then flipping them to
buyers who may not be qualified by taking back owner financing. In other
words, they were selling properties on terms that the buyers didn't really
have the qualifications and income to meet and then those buyers later
lost their homes in foreclosure.


Like you I would also have to check but there were no exceptions mentioned
for this state, KY.

Now that you have mentioned it, I will check because I only want to sell a
couple.

Colbyt

"Colbyt" wrote in message
...

"Ron" wrote in message
...
Colbyt wrote:
wrote in message
...
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I
know lawyers specialize in different matters, what would be the type
of lawyer needed? (definition). Also, the home to be sold and home
of the seller are in two different states. Am I correct to assume
the transaction has to be done in the same state and county of the
home to be sold?



Pretty sound advice thus far thought some in tinted just a bit here
and there.

Now for the bad news. Many states mine included have recently
adopted a "no owner financed sales" without a mortgage license for
property that is not the sellers primary residence.

I think that comes from a recent federal law and there are waivers and
exceptions to that requirement. One is that if an individual does less
than 3 such transactions per year (I think that is the standard -- I
would have to check) he/she is exempt. The law was designed to protect
buyers from investors who buy lots of properties (sometimes "subject to"
the existing mortgage -- a mortgage takeover ) and then flipping them to
buyers who may not be qualified by taking back owner financing. In other
words, they were selling properties on terms that the buyers didn't
really have the qualifications and income to meet and then those buyers
later lost their homes in foreclosure.


Like you I would also have to check but there were no exceptions mentioned
for this state, KY.

Now that you have mentioned it, I will check because I only want to sell a
couple.

Colbyt


Here's a link dated September 19, 2011 with updated information on this
issue:

http://realestateblog.dsvgroupsite.i...dates-from-hud .

And here's a link to a video on the topic:

http://www.youtube.com/watch?v=nVGAx...ature=youtu.be .

The bottom line appears to be that he original poster will not have any
issues related to the S.A.F.E. Act regarding providing owner financing when
selling his/her property -- primarily because he/she is not habitually
providing owner financing, but instead is just doing it with this one
property that is being sold to a consumer buyer.

On 10/7/2011 8:55 AM, Ron wrote:
wrote:
On Oct 7, 7:20 am, "John wrote:
I have a relative who is going to sell a home on a land contract.
The price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I know
lawyers specialize in different matters, what would be the type of
lawyer needed? (definition). Also, the home to be sold and home of
the seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home
to be sold?

*Ideally the buyer and seller will each have their own attorney to
represent their respective interests. It is most important for the
buyer to have an attorney, however the seller doesn't want something
from the transaction to come back and bite them in the tush
afterwards.

I would hire an attorney located in the county that the property is
located and who has experience in real estate transactions. Be wary
of attorney's who advertise low rates. There may be a lot of
"Extras" tacked on that are standard procedure for any real estate
transaction. Also, find an attorney who returns phone calls in a
timely manner.

In some states it's routine to do real estate transactions
without an attorney, using for example a title company
to do the closing. Here in NJ, sales are almost always
handled by an attorney, which I would think is the safest
and best way for most people. You really should have
someone that is looking out for YOUR interests when
writing the contract and making sure it's all done
correctly.

Just a note about New Jersey (which is where I am located). There are
actually two different "typical" systems or "standard practices" in New
Jersey regarding real estate transactions. In North Jersey the closings are
almost always handled by an attorney and usually conducted in the attorney's
office. In South Jersey, many (or most?) closings are handled by title
companies, often in the title company office, and people may or may not have
attorneys representing them in the transaction. That is what the "custom"
is in New Jersey.

I don't know about the whole state but it is the same thing in my part
of PA. You go to a title company who collects the info, does the title
search and prints out a standard sale agreement.


In this case in particular, especially since the plan is to sell using a
land contract and the seller is out of state, using an attorney would be
important.

George wrote:
On 10/7/2011 8:55 AM, Ron wrote:
wrote:
On Oct 7, 7:20 am, "John wrote:
I have a relative who is going to sell a home on a land contract.
The price and terms have been discussed with the buyer. Now the
paperwork needs to be filled out and legalized. Who who do they go
to to do this legal paperwork? I assume it's either a realtor or
lawyer. But which is the preferred method? If it's a lawyer, I
know lawyers specialize in different matters, what would be the
type of lawyer needed? (definition). Also, the home to be sold
and home of the seller are in two different states. Am I correct
to assume the transaction has to be done in the same state and
county of the home to be sold?

*Ideally the buyer and seller will each have their own attorney to
represent their respective interests. It is most important for the
buyer to have an attorney, however the seller doesn't want
something from the transaction to come back and bite them in the
tush afterwards.

I would hire an attorney located in the county that the property is
located and who has experience in real estate transactions. Be wary
of attorney's who advertise low rates. There may be a lot of
"Extras" tacked on that are standard procedure for any real estate
transaction. Also, find an attorney who returns phone calls in a
timely manner.

In some states it's routine to do real estate transactions
without an attorney, using for example a title company
to do the closing. Here in NJ, sales are almost always
handled by an attorney, which I would think is the safest
and best way for most people. You really should have
someone that is looking out for YOUR interests when
writing the contract and making sure it's all done
correctly.

Just a note about New Jersey (which is where I am located). There
are actually two different "typical" systems or "standard practices"
in New Jersey regarding real estate transactions. In North Jersey
the closings are almost always handled by an attorney and usually
conducted in the attorney's office. In South Jersey, many (or
most?) closings are handled by title companies, often in the title
company office, and people may or may not have attorneys
representing them in the transaction. That is what the "custom" is
in New Jersey.

I don't know about the whole state but it is the same thing in my part
of PA. You go to a title company who collects the info, does the title
search and prints out a standard sale agreement.

Interesting. I never heard of a title company in PA doing the agreement of
sale, but maybe what they print out is the standard PAR (Pennsylvania
Association of Realtors) Agreement of Sale. I think that form is similar in
concept to what New Jersey Realtors use -- meaning it's a standard contract
form that has been approved by the legal profession and contains all of the
caveats about getting an attorney to review the document etc.

I am in New Jersey but across the river from Philadelphia County and Bucks
County Pennsylvania.

On 10/6/2011 7:48 PM, wrote:
Sorry this is a bit off topic, however lots of repairs were done to
this home before selling.......

Anyhow,
I have a relative who is going to sell a home on a land contract. The
price and terms have been discussed with the buyer.

The "land contract" deal became popular c. 1980 to get around "due on
sale" clauses in mortgages. At that time, the mortgages rate was in
the double digits and mortgages were hard to get. The "land contract"
let the buyer effectively assume the old mortgage without the permission
of the mortgage holder.

I was the buyer in such a deal back then.

The key is to get a lawyer who has worked out the details and can
protect both buyer and seller. Among other things, the lawyer set up a
lien on the property for me so that if the buyers' died (which they did)
the heirs can't get carried away. It worked quite well. The only
paperwork that actually was filed in the courthouse was my lien!

Frankly, in today's market/economy I don't see the need for this.

There is another type of "land contract" where the owner effectively
leases the land on a net basis (lessor pays taxes, etc.) to the "buyer"
for a LONG time. Typically, the term can be 100 years. Sometimes
very expensive buildings are put on the land. When the lease is within
a decade or two of expiring, some serious negotiations take place. The
lessor will tend to simply let the building rot away while getting as
much rent as he can from his tenants. Usually, a new deal is cut with
a new land contract.

Back in the '80s, at least one apartment building that sat on leased
land was converted to condos. In something like 20 years the condos
would revert back to the land owner! I never found out whether anyone
actually bought the condos and whether the paid a low price.

In the land lease contract, it's good to get a lawyer but it's not all
that usual except for the long term.


Now the paperwork
needs to be filled out and legalized. Who who do they go to to do
this legal paperwork? I assume it's either a realtor or lawyer. But
which is the preferred method? If it's a lawyer, I know lawyers
specialize in different matters, what would be the type of lawyer
needed? (definition). Also, the home to be sold and home of the
seller are in two different states. Am I correct to assume the
transaction has to be done in the same state and county of the home to
be sold?

I'm not a lawyer but the "deal is signed" wherever the parties can get
together. It can be done with the parties in two different states (or
even two countries). The fax machines get a real workout. But the
contracts are IAW the jurisdiction where the property is located and
that's where they, usually, are filed.