Cohousing-L Mailing List: Owner Financing 43 Acre Sale to Co-Housing Group

[Maura Deering (maura]

Hi Tony,

I'm assuming that you are arranging the sale to the LLC without using a 
realtor or broker, is that correct?

Without knowing the specifics of Louisiana property law, I would offer 
that, generally, you'll need a real estate contract (also called a land 
installment contract) that contains (at minimum) the following:

1. Time and manner for transferring title;
2. Procedure for declaring forfeiture;
3. Allocation of risk with respect to damage or destruction;
4. Insurance provisions;
5. Responsibility for taxes, repairs, water and utilities;
6. Restrictions, if any, on capital improvements, liens, removal or 
replacement of personal property;
7. Types of use;
8. Time and place for monthly payments; and
9. Indemnification provisions.

Maura Deering
Attorney at Law
Jackson Place Cohousing
Seattle, Washington






> Date: Mon, 09 Jan 2006 07:12:31 -0600
> From: "Tony Adrian" <nursingdata [at] msn.com>
>
> My wife and I purchased 43 acres of rural land for a small, core group 
> of
> individuals who are in the planning phase of creating co-housing. The 
> group
> created a legal entity (LLC I believe). The plan is we will sell the 
> land to
> the LLC as an owner financed deal with the LLC to pay us over 10 years 
> with
> interest. Our intention is not really driven by the profit margin but 
> to
> help these folks get started before the land prices in our area make it
> impossible. We will own the land outright within the next 60 days.
>
> Any ideas of how to structure the transaction and any realistic 
> pitfalls
> that both parties should consider would be greatly appreciated.