# Private real estate sales **URL:** \ **Category:** Factual Questions\ **Created:** [November 28, 2000, 8:04pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076 "2000-11-28T20:04:43Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![dragonlady](https://avatars.discourse-cdn.com/v4/letter/d/5f8ce5/32.png) [@dragonlady](https://boards.straightdope.com/u/dragonlady)\ **Post date:** [November 28, 2000, 8:04pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/1 "2000-11-28T20:04:43Z")
My landlord is willing to sell me my house. She will carry the mortgage herself. Who do I go to to have a contract drawn up? Do I need a real estate lawyer, a real estate agent, or someone else? ---
**Author:** ![BunnyGirl](https://avatars.discourse-cdn.com/v4/letter/b/22d042/32.png) [@BunnyGirl](https://boards.straightdope.com/u/BunnyGirl)\ **Post date:** [November 28, 2000, 8:43pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/2 "2000-11-28T20:43:43Z")
Wow, congratulations. This is commonly known as a land contract arrangement and no, you don’t need a real estate agent. However, I would invest in a real estate attorney. He will make sure that you understand the contract, your payment obligations and other rights and responsibilities of the contract. Is your landlady going to pay to have the contract drawn up? If not, you may want to discuss with her the option of splitting the cost with you. I’m sure there is a boilerplate that your attorney can pull up for you and personalize for your particular situation. Land contracts can be good because you can sometimes get the interest rate to be an amount less than the standard rate at a bank. Good luck! ---
**Author:** ![Running\_with\_Scissors](https://avatars.discourse-cdn.com/v4/letter/r/a183cd/32.png) [@Running\_with\_Scissors](https://boards.straightdope.com/u/Running_with_Scissors)\ **Post date:** [November 28, 2000, 8:44pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/3 "2000-11-28T20:44:16Z")
You don’t need a RE agent, but each party should have his/her own real estate lawyer. This is pretty standard stuff and shouldn’t cost more than a few hundred for either party. ---
**Author:** ![Jingo](https://avatars.discourse-cdn.com/v4/letter/j/b9e5f3/32.png) [@Jingo](https://boards.straightdope.com/u/Jingo)\ **Post date:** [November 28, 2000, 8:54pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/4 "2000-11-28T20:54:14Z")
I’ve heard of this arrangement before, and though I don’t fully understand it, I’ve been told that it’s quite advantageous for the buyer. In any case, in lieu of (or at least before) contacting a real estate attorney, you may wish to contact a settlement company. A local company I called said that they would be happy to inform you of what local and regional contract specifics would apply and what things to look out for. Of course, I’m assuming that they would take a fee for drawing up all the contracts and such, but I think they may be better than an attorney in this case. As always, YMMV. ---
**Author:** ![dragonlady](https://avatars.discourse-cdn.com/v4/letter/d/5f8ce5/32.png) [@dragonlady](https://boards.straightdope.com/u/dragonlady)\ **Post date:** [November 28, 2000, 9:48pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/5 "2000-11-28T21:48:31Z")
I expect it to be a good deal for me, since I probably wouldn’t qualify for a regular mortgage loan. I will be paying for the expenses. I don’t show a listing for a “settlement company”, any idea what else they might be called?? Also, any advice on what to look for/ask for? With a bank loan, the bank usually pays property taxes and sometimes insurance out of the loan. Should I expect that here? I’m trying to figure out what I can pay in payments… ---
**Author:** ![handy](https://avatars.discourse-cdn.com/v4/letter/h/b5a626/32.png) [@handy](https://boards.straightdope.com/u/handy)\ **Post date:** [November 28, 2000, 11:40pm UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/6 "2000-11-28T23:40:08Z")
Everything you need is right here: [http://nolo.com/product/re.html](http://nolo.com/product/re.html) ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [November 29, 2000, 12:58am UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/7 "2000-11-29T00:58:27Z")
> [@](#): > > \*Originally posted by dragonlady \* > \*\*I expect it to be a good deal for me, since I probably wouldn’t qualify for a regular mortgage loan. I will be paying for the expenses. I don’t show a listing for a “settlement company”, any idea what else they might be called?? > Also, any advice on what to look for/ask for? With a bank loan, the bank usually pays property taxes and sometimes insurance out of the loan. Should I expect that here? > I’m trying to figure out what I can pay in payments… \*\* If your mortgage contract is directly with the seller I would expect you, as purchaser, to be responsible for all expenses with respect to property taxes and you will typically pay these directly to the local taxing entity. As a real estate agent I would agree that if you have worked out a deal you obviously do not need an agent. I would, however, encourage you to get a lawyer and not a settlement company. Buying a house, especially with a privately held mortgage, can be rife with unseen hazards and a good lawyer will craft a contract that addresses these and represents your interests. I would also get a full home inspection done ( 175 - 250). An inexpensive basic appraisal (typically $ 200- $300) wouldn’t hurt either to make sure you aren’t getting overcharged. ---
**Author:** ![dragonlady](https://avatars.discourse-cdn.com/v4/letter/d/5f8ce5/32.png) [@dragonlady](https://boards.straightdope.com/u/dragonlady)\ **Post date:** [November 29, 2000, 1:40am UTC](https://boards.straightdope.com/t/private-real-estate-sales/43076/8 "2000-11-29T01:40:36Z")
Thanks so much! I may order a book off that site Handy, thanks for looking it up for me. I suppose I could have found it myself… And astro, I’m going to take your advice. It’s a lawyer for me. It looks like this is going to cost more than I thought, though. Inspection, appraisal, lawyers fees, title search. Gotta be $1000 or more. Maybe time to rethink the situation.