I have recently managed to track down a few motivated sellers of some lake lots in a community within an hour of my home. My purchase prices are in the 20-25% of MV and I am pretty sure on MV after a good amount of research and word from the community manager on what they sell lots for.
My Questions:
What are my options for selling. Obviously I can sell for all cash, but I am more interested in financing.
If I do finance, I could sell via contract for deed but I am worried about liability. Say I do not transfer title and take payments, saying I will grant them a warranty deed when all the payments are made. Am I liable if a kid gets hurt on what would be considered my land at that point? Or is it considered “their” land and I am not responsible?
I am wondering how to finance the lots to end buyers AND not have any personal liability in case someone was to get hurt, etc. Any advice?
Ive bought properties on CFD or land contract as it is sometimes called. Never bare land though and the rules may vary from state to state. However in Indiana, where I am, I as the buyer purchase and carry all insurance. I am required to name the seller and seller’s lender if applicable as “additional insured”
Bottom line advice…contact a local attorney that has a good understanding of real estate and have them prepare the docs and make sure youre covered properly.
I am really only needing advice on the selling side of things. The main goal is to be able to finance while limiting liability BUT not having to foreclose if people miss payments.
I want to sell on note because I can get a ton more and monthly cashflow.
If you are raising the price and carrying the note…be CERTAIN… you are not in violation of the seller carry/financing law passed a couple of years ago.
A question like this belongs on Law Forum as you/it really is wanting a lawyer’s knowledgeable info, not just a bunch of laymen giving their idea of what the law is…and most of those lay guessers don’t find and read the law on same.