Dear lawyer Mark: I’ve had my old house for sale with realtors for almost two years now, but it still hasn’t sold.
I have asked a few people to review it and even make offers, but none of them can get a bank loan because of their bad credit.
I don’t want it to stay empty, but of course I don’t want to rent it and have someone tear it up.
One of the people who had bad credit asked me if I would sell it to her under a land contract.
I’m really thinking about doing it, but I need to know what everything should be in the land contract.
I also want to make sure he’s right when he told me that if he didn’t pay I could just kick him out as a lease.
Is it correct? – WORRIED IN WINDSOR
Dear Worried: Section 5313 of the Ohio Revised Code governs land contracts.
By virtue of its articles, contracts must be executed in duplicate and must contain at least 16 special provisions.
Some of these are obvious, such as the names and addresses of sellers and buyers (called sellers and sellers for a land contract), and others less obvious, such as a “statement of any pending order from an agency. public against property. “
The land contract should also include the legal description of the property, the sale price, interest rates, payment due dates, if there are other charges, as well as who should pay the property taxes. , and if there is a mortgage due, among other items.
Although not technically required, other provisions should also be included in the land contract, such as who is responsible for maintaining property insurance and who would be the beneficiary of any insurance claims.
This can be extremely important, for example, if there has been a fire that has not completely destroyed the premises, but the buyer wishes to stay.
Who gets the money from the insurance company – the seller for the purchase price, or the buyer for the damage to what will be his house?
Your potential seller is partially correct that you can evict it as a rental.
If he is 30 days late on payment and the scenario below does not apply, you can evict him and cancel the land contract in a court case fairly quickly, if you follow the right procedures.
If you do this, you cannot sue him for missed payment, unless he has paid less than the fair rental value of the property.
However, under article 5313.07 of the RC, if a buyer has paid more than 20% of the purchase price or has paid the contract for more than five years, the seller can only take possession of the land by engaging a foreclosure proceedings.
This means that you will have to take legal action against him, get a judgment in the lawsuit, and then have the property sold in a sale by a sheriff after you advertise the sale, just like a bank would in a bank. foreclosure.
You can only recover the amount that is still owed to you on the property, with the excess proceeds from the sale going to the buyer.
Thought of the week: “I have the simplest tastes. I am always satisfied with the best. Oscar wilde
It’s The Law is written by attorney Mark K. McCown in response to legal questions he received. If you have a question, please forward it to Mark K. McCown, 311 Park Avenue, Ironton, Ohio 45638, or email him at LawyerMark@yahoo.com. The right to condense and / or modify any questions is reserved.