seeking experience/info selling land owner finance

[terracore]

Somebody wants to buy our lot with an owner finance. We are still negotiating but agree in principle to the purchase price, down, and terms. I understand we'll have to get title company etc involved but I'm more seeking if anybody else has gone through this process and has experiences to share etc.

[HereOnThePrimalEdge]

I bought a property direct from the seller and had the title company handle title search and escrow.
We didn't have the owner finance the sale, when you do that in Hawaii it's called an Agreement of Sale.
Lots of info on Google:
https://www.google.com/search?q=hawaii+agreement+of+sale&ie=utf-8&oe=utf-8

[terracore]

There is a difference between an agreement of sale and a PPM. Can anybody weigh in?

ETA: Less drama

[kalakoa]

Not automatically "agreement of sale", buyer and seller can draw/execute/record a conventional mortgage if they so wish, and enjoy all the rights and responsibilities thereof.

[pbmaise]

With a PPM you give title away and have to get it back via a very expensive foreclosure if they stop payments. Unless property sale is above $500k with $200k down, I wouldn't consider it. Save $100k for legal expenses.

In agreement of sale, you agree to sign final deed over to person after final payment. I would'nt permit any construction till final payment was made.

I lost about $40k on a PMM when buyer stopped paying. Was too expensive legally for me to foreclose

[SuperGu]

quote:

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Originally posted by pbmaise

I would'nt permit any construction till final payment was made.

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Why? If you take the property back the added value would be yours. Plus, any value the buyer puts into the property helps to ensure they will make their payments, and on time. It's a win-win.


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* ALOHA *
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[terracore]

I could see that... if they use the land as a dump and then foreclose, you have to pay to have the junk removed, unsafe structures removed, etc.

[SuperGu]

quote:

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Originally posted by terracore

if they use the land as a dump and then foreclose, you have to pay to have the junk removed, unsafe structures removed, etc.

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You could very easily write that into the contract. These agreements are boiler plate. I've done several of them. Never had an issue. It's common here in Puna. BTW, easy way to make money here in HI.


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* ALOHA *
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[terracore]

Does anybody know a realtor or broker who will write up a purchase agreement and complete this process for a nominal flat fee? I'm not interested in paying a huge commission when we've already found the buyer and negotiated the price etc.

[opihikao]

quote:

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Originally posted by terracore

Does anybody know a realtor or broker who will write up a purchase agreement and complete this process for a nominal flat fee? I'm not interested in paying a huge commission when we've already found the buyer and negotiated the price etc.

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Personally, I'd use a lawyer who can do that real quick and affordable. It's a basic document, just using a lawyer makes sure your interests are indeed included in the terms, and the language is clean (legally). Open escrow, sign and you're done! Easy peasy.

Good luck to you, and best wishes.

JMO.