To establish liens and encumbrances is very important once you are set to making your own land contract. These are considered very vital as they provide third parties an interest to the property. Moreover, it also provides a certain limit in the buyer’s interest to the said property. These liens and encumbrances may also include other loans or even mortgages in which the said property is being used to serve as collateral. Every lease to own contract is considered to be very important as this would also form part and basis on the payment terms.
When it comes to detailing the payment terms to be stipulated in the said contract, one of the first things that they need to check is whether the said liens and encumbrance fits the ability of the buyer to pay for the said terms. Thus, the payment terms to be provided here should be in understandable English vernacular and that the words and terms used are not complicated. When it comes to setting forth the terms of payment, it has to completely indicate the exact mode of payment – whether it should be monthly, quarterly, annually or depending on the agreement between the seller and the buyer. Aside from which, the interest here must also be expressly stated. For instance, it must say that the interest is computed at a certain rate which will be compounded on an annual basis. If one of the parties fails to follow the proceedings in the contract, then the terms as stated in such contract would define which party would be at fault here. If you have some questions in your minds, you must read more on related sites, forums, etc.