Wisconsin Real Estate Forms: Understanding Land Contract Agreements
If you`re interested in purchasing property in Wisconsin, you may come across a type of real estate sale called a land contract. Land contracts are agreements between a buyer and seller where the buyer makes regular payments to the seller, rather than obtaining a traditional mortgage from a lender. This type of sale offers some unique advantages, such as less stringent credit requirements and the ability for the seller to earn interest on the sale.
However, land contract agreements can also be complex and require specific legal documentation. In this article, we`ll review some of the most common Wisconsin real estate forms involved in a land contract sale.
1. Land Contract Agreement – This is the primary document outlining the terms of the sale. It will include information such as the purchase price, down payment amount, interest rate, payment schedule, and any contingencies or conditions of the sale. Both the buyer and seller will need to sign and date the agreement.
2. Promissory Note – This document is a legally binding contract between the buyer and seller for repayment of the purchase price. It will include the amount of the loan, interest rate, payment schedule, and any penalties for missed payments.
3. Mortgage – While the buyer is making payments directly to the seller, it`s still important to have a mortgage document in place. This document provides the seller with a lien on the property until the buyer pays off the full amount owed.
4. Warranty Deed – This document transfers ownership of the property from the seller to the buyer once the land contract is satisfied. It`s important to ensure that the warranty deed accurately reflects the terms of the land contract agreement.
5. Closing Disclosure – This form is required by federal law and outlines all of the closing costs associated with the sale, including loan fees, title insurance, and taxes. It`s important to carefully review this document to ensure there are no unexpected costs.
6. Lead-Based Paint Disclosure – Homes built before 1978 may contain lead-based paint, which can be harmful if ingested. Sellers must disclose any known presence of lead-based paint and provide buyers with a pamphlet on the subject.
7. Real Estate Condition Report – This document discloses any known defects or issues with the property, such as a leaky roof or faulty plumbing. Buyers should carefully review this report to ensure they understand the condition of the property they are purchasing.
Navigating a land contract sale can be complex, but having the proper Wisconsin real estate forms in place can help ensure a smooth transaction. If you have any questions about land contracts or need assistance with real estate documentation, it`s important to consult with a licensed attorney or real estate professional.