need help with farm land contract.....

Discussion in 'Homesteading Questions' started by rt846, Dec 8, 2004.

  1. rt846

    rt846 New Member

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    Dec 8, 2004
    hi,

    i used to visit here everyday when i rented a farm back in 2001...... now, i have bought my own 20 acres. we are going to make up a land contract with owner financing..... it was originally part of a 100 acre farm and the rest of the family has sold off their acreage. he has the original deed and says his lawyer said he can pick his 20 since none of the others designated a certain area. i will have to have it surveyed also, buthe has no idea what to do(hes 18 and wants to just get rid of it) and i dont know exactly what clauses i should put in it beside the monthly payment, a clause to say he cant take it back after i build my cabin next summer, etc........ i dont know where to start though. if anyone can get me some....lots of pointers on how i can protect myself....it would be greatly appreciated.

    thanks so much,

    aaron
     
  2. rambler

    rambler Well-Known Member Supporter

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    MN
    Real short - get your own lawyer.

    You are dealing with siblings & 'undesignated' land you say? First one up picks out any 20 acres & sells it????? And the other 4 won't care that you got the choice spot right - uh huh..... And you will build on it, but it's contract for deed, so who owns the land, who owns the house if you miss payments? And he has a lawyer representing him.....

    Get your OWN lawyer. Best money you will spend in the next 25 years....

    --->Paul
     

  3. Donovan K

    Donovan K Well-Known Member

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    Feb 25, 2004
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    just in case you missed what Paul said.

    GET A LAWYER


    Happy Holidays

    D
     
  4. RMShepp

    RMShepp Active Member

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    I agree--get a lawyer, you can't afford not to.
     
  5. desdawg

    desdawg Well-Known Member

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    Arizona
    Yup, get an attorney. The land has to be split legally, a new deed created for your 20 acres, and all parties that are in title to the property as it exists will have to sign. Also, get title insurance and record the transaction at the county recorders office. The attorney should be able to handle all of that.
     
  6. jack_c-ville

    jack_c-ville Well-Known Member

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    Desdawg is very right about the title insurance in addition to the lawyer. Title insurance guarantees the value of your title to the land. Meaning that if 5 years from now one of those siblings comes back and successfully claims that the land was never the seller's property to sell to you in the first place, you will at the very least be paid the current value of the land (make sure that your improvements will be covered by the policy as well). It's not very expensive and your real estate attorney can refer you to a provider.

    Otherwise you'd just be stuck with no land and no money trying to sue the seller for damages that he may not even have.

    This is a classic example of the somewhat iffy land deal that cries out for legal representation and proper insurance even more so than a typical transaction. The absolute worst that you could do would be to blindly trust that everything will be fine and just sign on the dotted line to get it over with.

    -Jack
     
  7. quietstar

    quietstar Well-Known Member

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    Hi Aaron: As someone that has been involved in country real estate for more than 30 years, your situation alarms me for several reasons. You NEED to receive an Owners Title Policy even if you have to pay for it yourself. Any title company has expert land lawyers who will be concerned with the quality of your title since they are issuing a lifetime policy to you. The cost should be no more than most lawyer fees. Any sale of estate(family) property is rife with the possibility of conflicts and clouds on title. True title is not conveyed with a "contract" and case law reveals many flaws including problems enforcing the terms on heirs if something should happen to the Seller. Get a title policy and look at all exceptions listed....Ask them questions about anything you don't understand. Get a deed, and give the Seller the same security a local bank would have if they did the financing. An additional advantage is that the title company will(should) examine the true condition of current property taxes. I would Be willing to place earnest money in THE TITLE COMPANY ESCROW with a written agreement. Feel free to PM me if I can help and good luck...Glen
     
  8. WAB

    WAB Well-Known Member

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    SC
    Go to a lawyer and let him handle it. Personally I would have it treated just like a bank loan. Have the land titled to you then put the seller as lienholder. That will protect you the most. And most certainly get title insurance.