The Easiest Way To Draw Up a Land Contract in Indiana

Standardized Legal Documents The Easiest Way To Draw Up a Land Contract in Indiana

Landing a Land Contract in Indiana—What You Need To Know

Although most people opt for a bank loan to finance their property purchase, some are not eligible for this type of funding because of bankruptcy or poor credit ratings. Is there another way to buy real estate?

The answer is yes! Seller financing is becoming increasingly popular in the United States, and land contracts regulate the terms of this transaction.

Is the legal jargon making your head spin? Find out what seller financing is, how to draw up a land contract in Indiana, and how to generate contracts and legal documents using DoNotPay.

What Is a Land Contract?

A land contract is an official agreement allowing the buyer to purchase a property from the seller. It is also called a real property installment sales contract or a contract for deed

The buyer uses seller financing to finance the property. It is an arrangement in which the seller finances the purchase instead of a financial institution. This option is particularly useful for buyers who have a negative credit rating and cannot secure a loan from a bank. 

Unlike a lease purchase, a contract for deed allows you to buy the property in installments. After an initial down payment, you pay monthly installments for the duration of the arrangement. Once the period ends, you will have to pay the remaining amount all at once. This is referred to as a balloon payment, usually sourced through a loan. 

You can start using the property immediately after the down payment, but the ownership remains with the seller until you have covered the purchase price in full.

How Does a Land Contract Work in Indiana?

A land contract in Indiana works as follows:

  1. The buyer shows interest in a property and meets with the owner to negotiate the terms of the agreement
  2. The contract is drafted after successful negotiations
  3. Both parties sign the pact
  4. The buyer pays the initial down payment, subsequent monthly installments, and final balloon payment
  5. The seller transfers the ownership title once the buyer pays off the entire debt 
  6. The buyer becomes the legal owner of the property

What Should a Land Contract in Indiana Cover?

Here are the key elements you should incorporate when drawing up a land contract:



Identification of both parties
  • Names
  • Addresses
  • Contact information
The description of the property
  • Location
  • Size
  • Defects (if any)
  • Other useful information
Effective dateDate when the agreement becomes effective
Terms and conditions
  • Purchase price
  • Down payment
  • Interest rate
  • Balloon payment
  • The duration of the contract
  • Number of installments
  • Any extra charges
  • Details of ownership transfer
  • Steps to take if the buyer defaults
  • Procedure to follow if the seller passes away or backs out of the arrangement without a valid reason
  • Duties of the seller
  • Responsibilities of the buyer
SignaturesSignatures of both parties, confirming they have read and understood the terms of the agreement

Is a Land Contract in Indiana Legally Binding?

Land contracts in Indiana are legally binding, and the buyer should carry out due diligence to ensure all the terms and conditions are being followed. 

If any party breaches the contract, it can result in legal action. If the buyer defaults, they risk a foreclosure action and a subsequent foreclosure sale. The seller can keep all payments received as liquidated damages. 

In case the seller is in violation, the buyer can claim previous payments, cancel the contract, or file a lawsuit, depending on the severity of the breach.

Get DoNotPay To Draft Legal Documents for You

It is advisable to consult an attorney to draft a legal document, but what if you don’t have the budget to hire one? 

Searching for contract templates online is another viable option, but stock templates are usually outdated and don’t allow you to customize the document. 

If you want to create legal agreements in no time, use DoNotPay! Follow these easy instructions to create a watertight contract:

  1. Enter the name of the document in the search box
  2. Answer our chatbot’s questions to personalize your agreement

That’s it! Your document will be ready within minutes! All you have to do is print and sign it.

DoNotPay Can Create Numerous Contracts and Agreements

Do you have other contracts you want to make? For a small monthly fee, can create numerous documents for you. 

Check out the agreements we can generate:

Can’t find the one you’re looking for? We’re working on adding more documents to the list, so stay tuned!

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