Legal form Q: Land Mortgage

Factual Questions
1

I’m tangentially involved in a couple of projects, both of which have hit on the same situation, and I’ve been asked to minimize legal costs by roughing out a form package for lawyer review.

The circumstances are that A owns land suitable for subdivision and housing development, but is not interested in doing that himself. B is a developer, with financing in place, but is not interested in paying for the land at an acceptable price at present. What he wants to do, which is acceptable to A, is to take the land and give back a no-interest short-term mortgage to it, payable in full when the properties are sold.

I have three problems relating to this:

  1. I need a good New York state-valid mortgage form (and related forms) that I can modify to suit their needs. I’m having trouble finding such on the Internet except as part of the Ripemoff Legal Forms Database (Subscription Required).

  2. I need to craft language that permits subdivision and carries over the mortgage to the subdivided lots.

  3. Because A does not totally trust B, I need to craft language that guarantees payoff of the mortgage by the eventual homebuyer (or his lending institution in actual fact) at the time of closing on the individual subdivided, developed home parcels.

Any guidance as to where I can find language and examples to fit these circumstances, especially from lawyers familiar with New York State real estate practice, will be greatly appreciated.

2

Good Luck in finding help!

I don’t see how anyone in their right mind who would underwrite such a scheme. It has to be mortgaged by the developer first before his takes possession? Then then it is subdivided? Can one subdivide a mortgage? If A plans to underwrite himself, he takes all the risks. The word mortgage is thrown about. I don’t think mortgage is the correct term as used by B, if A doesn’t receive payment in total upfront, unless A is underwriting it. Doesn’t subdivided land need to be redeeded? Etc. :dubious:

3

The permitted bump. If anyone can steer me to answers to any part of the above, please do so.

4

IANAA.

Just go to a stationary store and buy a mortgage form and warranty deed, have the attorney(or if you can) fill them out, have them signed and record.

When a lot is sold, then a partial release is signed by A and recorded. Of course,
A should do this only when he gets the money.

If they want to agree to a lot price or any of matters, the attorney should draw those agreements up.
.