Questions Concerning a Land Contract

What if the buyers are living in the house and the owner(s) die before the balloon payment is due?
What if the buyer is also one of the heir’s. How can we protect the people who are occupying the house (our son and his family)?
What if we have written a land contract for $145,000 and the improvements to the house have a value of $175,000; at the time we pass away? What would be the other (only two heirs in this situation) heirs 50%?
What are all the possible issues that need to be addressed when going into a Land Contract with one of your children and they are purchasing the “Homestead”?
What if we want to have the options to alter or change the balloon payment date due?

What if the buyers are living in the house and the owner(s) die before the balloon payment is due?
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The buyers continue to make payment to the owners' estate(s).


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What if the buyer is also one of the heir’s. How can we protect the people who are occupying the house (our son and his family)?...

Make sure someone steps up to the plate and applies to be appointed personal representative of the estate.


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What if we have written a land contract for $145,000 and the improvements to the house have a value of $175,000; at the time we pass away? What would be the other (only two heirs in this situation) heirs 50%? ...

Doesn't matter. You have a contractual right to buy the property at $145 K. Each heir would be entitled to $72,500.


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What are all the possible issues that need to be addressed when going into a Land Contract with one of your children and they are purchasing the “Homestead”? ...

Depends. Ask an attorney in your jurisdiction.


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What if we want to have the options to alter or change the balloon payment date due?

Put such options in the contract.

As noted, you continue to pay the estate. When the contract is completed, the estate pays the heirs. The executor may have the option of paying the contract payments back to the heirs on a monthly basis or giving credit for their share.

You cannot change an existing contract without the agreement of all parties.However, the buyers could pay off the contract sooner.