The Arkansas Kit purchase agreement includes the AR sale contract, real estate disclosures and additional property forms. By the name of the real estate company, it is easy to determine the identity of the main broker for each seller. However, the use of personal team names and logos, which are primarily used for marketing purposes, can sometimes complicate the burden on consumers. By quickly calling the real estate commission or checking the licensee on the www.arec.arkansas.gov Commission`s website, the consumer can determine who is the seller`s main broker. Please contact the Real Estate Commission at 501-683-8010 if you need more information. When buying a property with an existing financing, the buyer can request an « Estoppel » from the seller`s lender. An Estoppel confirms the monthly payment amount of the seller, the balance of the loan and all taxes or insurance currently held in trust. If the seller`s monthly payment is $800 per month, the monthly payments offered in the ownership agreement should be sufficient to cover this amount. Similarly, the total purchase price of the property contract should be equal to or greater than the seller`s balance on the loan.
The next step that buyers can take is preventative. Before entering into a land contract, a buyer should receive a property search on the land to discover potential charges, including existing financing or unpaid pledges. A title search also confirms that the seller is the owner and whether the seller owns a clear property of the property. In a land contract, a seller agrees to « finance » the purchase of the property for the buyer by entering into a financing contract with the seller. The financing conditions for a land contract are often similar to those of traditional financing: the seller can apply for a down payment, claim interest and recover monthly payments. However, a land contract differs from traditional financing by the fact that the simple royalty for the property remains in a property contract with the seller until the buyer meets the seller`s financing conditions and fully settles the buyer`s debts. In the typical ownership agreement, the fee title is immediately at the conclusion. The real estate commission has seen its fair share of hot stories related to land contracts. While these contracts can certainly be used legally and legally, our experience is that land contracts can also lead to misfortunes for the parties involved.