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Land contracts can easily be written or modified by any seller or buyer; one may come across any variety of repayment plans.

Since the amount of the final payment is so large, the buyer may obtain a conventional mortgage loan from a bank to make the final payment.Real property is distinguished from personal property, which is other property owned by a business or individual, including equipment, furniture and fixtures.With a land contract the seller provides financing to buy the property for an agreed-upon purchase price and the buyer repays the loan in installments.Since a land contract specifies the sale of a specific item of real estate between a seller and buyer, a land contract can be considered a special type of real estate contract.In the usual, more conventional real estate contracts, a seller does not provide a loan to the buyer.Establishing the correct title and value of the property to be used as collateral is important to the lender.

Thus, the lender commonly requires title service including title search and title insurance by an independent title company, appraisal and termite inspection of the property to ensure it has sufficient value, a land survey to ensure there are no encroachments, and use of lawyers to ensure the closing is done correctly.

Under a land contract, the seller retains the legal title to the property, while permitting the buyer to take possession of it.

Most experts agree that anyone pursuing this option should retain a real estate attorney to draw up the land contract.

Real property is the land and all the things that are attached to it.

Real property may also be determined to include whatever is beneath the surface of the land, like minerals, natural gas, and old; also any rights to the use of the property and finally leasehold improvements (since they cannot be removed.) Leasehold improvements (sometimes referred to as “build-outs”) are the structural changes you make to leased space to make it suitable for your business needs; for example, lighting changes, a reception area, offices, dressing rooms, and other special rooms or partitions as well as paint and carpeting/flooring.

There can be other advantages of using a land contract too.

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