This Seller's Disclosure Notice of Financing Terms Contract for Deed serves as notice to Purchaser of the purchase price of property and how payments, interest, and late charges are set. This document should be completed by Seller of property and provided to the Purchaser at or before the signing of the contract for deed.
The Lansing Michigan Seller's Disclosure of Financing Terms for Residential Property in connection with a Contract or Agreement for Deed, commonly referred to as a Land Contract, is a legally binding document that outlines the important financial terms and conditions between the seller and buyer in a real estate transaction. This disclosure ensures transparency and informs the buyer about the specific financing arrangements involved in the purchase of a residential property. Keywords: Lansing Michigan, Seller's Disclosure, Financing Terms, Residential Property, Contract or Agreement for Deed, Land Contract. There are several types of Lansing Michigan Seller's Disclosure of Financing Terms for Residential Property in connection with Contract or Agreement for Deed that sellers may provide: 1. Down Payment: The seller's disclosure includes information about the required down payment, which is the initial amount paid by the buyer to secure the property. It specifies whether the down payment is to be paid in cash or if there are any alternative arrangements. 2. Purchase Price: The disclosure document states the total purchase price for the residential property. It may include details regarding any adjustments or contingencies related to the purchase price. 3. Interest Rate: The financing terms section outlines the interest rate applicable to the land contract. This information is vital for the buyer to understand their monthly mortgage payments and the overall cost of financing. 4. Payment Schedule: The disclosure provides the payment schedule agreed upon between the seller and buyer. It outlines the frequency of payments (monthly, quarterly, etc.), the due dates, and the method of payment accepted by the seller. 5. Term Length: This section specifies the duration or term of the land contract. It mentions whether it is for a fixed period, such as five years, or if it extends until the buyer fully pays off the property. 6. Late Payment Consequences: The disclosure informs the buyer about the consequences of late or missed payments. It may detail any late fees or penalties imposed by the seller as well as the grace period provided to rectify any overdue payments. 7. Property Insurance: The disclosure document may contain information regarding the required property insurance and who bears the responsibility for maintaining the coverage during the land contract period. 8. Property Taxes: It is common for land contracts to specify how property taxes are handled. The disclosure provides clarity on who is responsible for paying property taxes and any potential adjustments or prorations. 9. Prepayment Penalties: In some cases, the disclosure may mention if prepayment penalties apply. Prepayment penalties are fees imposed on buyers who choose to pay off the property before the contract's term ends. 10. Rights and Obligations: This section outlines the rights and obligations of both the seller and buyer throughout the course of the land contract. It clarifies the responsibilities of each party, such as property upkeep, repairs, and any restrictions on property use. It is important for sellers and buyers to thoroughly review and understand the Lansing Michigan Seller's Disclosure of Financing Terms for Residential Property in connection with a Contract or Agreement for Deed. Consulting with a qualified real estate attorney or agent can provide valuable guidance in navigating the intricacies of land contracts and ensure a smooth transaction process.
