A land contract loan is used as the official evidence between the seller and the property buyer where the loan is given to buy the land, and the buyer needs to repay the price in the form of loan instalments. This type of contract includes the details of the buyer and the seller, specifications of the real estate property included and commitment clauses.
Sample land contract loan contract:
Land loan contract Number: 24/ MC
This land contract loan is entered between Mr. Derek Brian, hereinafter known as the Seller, AND, Mr. Chris Pascal, hereinafter referred as the BUYER.
Permanent address details of the parties:
- The Buyer
Address: #89, Wakefield Blvd, CA, USA
Phone: 765 453 4739
- The Seller
Address: #32, St. Looney St , CA, USA
Working Phone: 645 087 1321
This contract is commencing on December 9th, 2011 and is ending on December 9th, 2012.
- Details of the Land involved:
Address: House no. #178, Wakefield Blvd, CA, USA
Hereby, to obey the Land contract loan, following mentioned are the conditions:
The buyer has received an amount of $ 30,000 from the SELLER as loan, with an interest rate of 10% per year.
- Obligations & Responsibilities:
The Seller will receive $2000 per month as the monthly instalment as loan repayment, whereas Buyer has to clear out all real estate taxes and charges on the property during the loan period. In case, these amounts are cleared by Seller, then they will get added to the loan amount. Borrower will have to pay these instalments until the principal amount and applied interest are fully paid back.
Hence, Both the parties are requested to validate the contract:
Signature of the Seller:
Mr. Derek Brian
Singed by the Buyer:
Mr. Chris Pascal
Signature of the Witness: