FSBO guidance needed.

[Tonya Rasmussen]

I’m buying a piece of land with a mobile on it. 15K down and the rest in monthly payments to the owner. No interest is being charged. I’m wondering if all the paperwork can be done with just the title company? Should it be a land contract? Any ideas or guidance appreciated. I want to make sure both the seller and I are protected.

Thx

Btw the land is in Arizona.

[George Skidis]

For me the key word is Mobile. If you mean a mobile home the following advice applies in most states. Exception: Mobile or modular homes on a permanent foundation that cannot be moved are frequently exempt from the following.

Mobile homes have a title just like a car. They are sold using a retail instalment contract. A loan against a mobile home is considered a lien and not a mortgage. The lien is recorded on the title issued by the secretary of state and it is NOT recorded at the county court house. Mobile Homes are taxed as personal property. This is a tax bill in addition to any state, county or municipal real estate taxes.

Real estate has a deed. This is sold using a real estate contract. A mortgage can be placed upon the property to secure a loan. The mortgage is recorded at the county court house. Paying the real estate tax does not mean the taxes on the mobile home are being paid.

You want both the deed and the title to be transferred to you at closing.

Mobile homes are treated like cars in most states. Not sure about AZ. 

As the Buyer I would want a sale with the owner providing a loan that is secured by the real estate only. This gives you a better equity position earlier in the agreement if you default on the loan. A land contract may not give you equity until you have paid a certain percentage of the sale price.

As the seller I would prefer to offer you a lease, with an option to buy. The buyer's down payment would be considered a non refundable option fee. The buyer would have no equity in the property until either paid in full or very late in the contract depending on the laws of the state where the contract is executed. Depending on the state a lease option would allow an eviction in 30 to 180 vs a foreclosure which can take a year or two. Plus all payments by the buyer are non refundable. Every landlord thinks about eviction and never wants to do a foreclosure.