Posted 5/14/2019 23:19 (#7497863) Subject: Land contract do's and dont's?
Last year in a casual conversation with a neighbor who is a good friend, he had mentioned he had a 5 year plan of retiring and selling his farm. I mentioned that if it were something he decided he wanted to move forward with in the future to let me know. Well i happened to see him today, and he said he would like to sit down for dinner some night and discuss some different options as far as possibly selling his farm on land contract. It is not a substantial amount of land and there is a lot of improvements to be done but i feel it can be bought for a fair price and would be a perfect fit to my future plans. He had mentioned that he wants to be able to live in the house for a few years yet so he can "come to terms that he no longer owns it" which i completely understand. I told him to write down some ideas of how we can set this up as far as length he would like to continue living there, who is responsible for what while he lives there, interest rate, length of contract etc so we can talk about it over dinner. Neither him nor i have ever bought anything on land contract so we have no experience to draw from on the matter. What have you guys found that are acceptable terms as far as what i mentioned to him, and what other things do you like to have in there? I have helped him with odd jobs and field work since i was 14, amd over the last 15 years i have found him to be an all around excellent person to deal with. Obviously a lawyer will be involved to look over the final contract but we are just in the spitballing phase right now. Thanks.