When a seller finances a purchaser's purchase of his property, the two parties will use a land contract. The purchaser receives the deed once he has fully made all payments. The State Bar of Wisconsin Form 11-2003 is the land contract form for Wisconsin.
Function
A land contract allows the purchaser to pay for a house in installments after negotiating with the seller. They establish flexible financing terms that sometimes are the only option available for one or both parties in real estate sales. Land contracts often have shorter terms and lower interest rates than mortgages.
Features
A land contract in Wisconsin must detail information including the document number as well as the names and signatures of the vendor and the purchaser. It must acknowledge which county of Wisconsin the deal took place in and include the purchase price, balance owing and interest amount per year. A notary public of Wisconsin must sign the document.
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Considerations
Both parties should consult a Wisconsin lawyer when creating their land contract to ensure they follow Wisconsin law and create a legally binding document that protects both parties' interests. If a purchaser breaches a land contract, the vendor can foreclose on the property.