LandInvestors.com Forums **Ask A Question** Land contract recording obtion

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    Milan
    Participant
    Post count: 502

    I see Brian and Kevin discussing option to record contract for deed or not. Yes I agree. Do not record it! But I don’t really think you have option here. I do 2 contracts for deed copies when I sell land on terms. One copy for me and one for the buyer. Buyer always, always wants some reassurance, so they want the contract in their file for their protection. This is understandable. So in this case he can choose to record with the county if he want to every single time. We don’t really have control over it. Or am I missing something?

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  • Kevin Farrell
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    Post count: 966
    ProAdvanced

    Milan – Yes, the buyer can record the contract with the county as far as I know. However, most of the people who are looking for a land contract purchase can barely write a check. The risk of them recording a document with the county on their own is very small. This all changes when we sell high value properties to more sophisticated buyers. They, or their attorney, may elect to have the contract recorded at the county. My belief is that this type of terms buyer is not likely to default.

    And yes, I definitely provide a copy of the signed contract to the buyer.

    Milan
    Participant
    Post count: 502

    I respect your answer Kevin. But that is really hoping not certainty. I don’t know about anyone else selling on terms, but my term buyer is usually very diligent person who does thorough research and wants to be certain what we’re doing is right way of doing it – term sales. They are very careful and the whole process takes time. They end up going for a deal after few weeks of due diligence.

    So if they can record, and it looks like they can and if they default you have to go through foreclosure ( not sure about that) than the land contract doesn’t protect you much at all.

    I’ll challenge all of you guys to go and check your terms deals, go to the county website and see how many are recorded. We all might be surprised. I will do that. Or maybe it’s better to not know 🙂

    Kevin Farrell
    Moderator
    Post count: 966
    ProAdvanced

    Milan – I think you have been dealing in high value land. Most of my terms deals are for $2500 properties. One phone call and sign the paper and it is done. That is type of buyer I was talking about. Anyone who takes weeks to perform due diligence probably had the contract recorded. But, as I say, that person is also unlikely to default. Very different buyers.

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