Short term seller financing of land - THANK YOU!

[Tom Miller]

We have vacant land under contract to a buyer for $149,900. There are no realtors in the transaction. We own this land free and clear. The buyer just learned the bank won't loan her the money until a well is installed on the land (15-20k, 4-6 months). The buyer asked us about offering a short-term financing contract that would allow them to purchase the property, put the well in and then cash us out with their bank financing in 6-12 months.

The terms the buyer offered are:

- 25% down ($37,475) at closing.

- the balance of $112,425 financed at 3.0% (amortized over 20 years) for a monthly payment of $624.00.

We do not have any legal experience in this and certainly would need the guidance of a qualified attorney.

1. Is 3% too low of a rate for the time extension and risks assumed? (That's generally a bank rate and doesn't seem to incentivize the buyer to finance as soon as possible.)
2. Any idea (ballpark) on what an attorney would charge us to advise us and draft a seller contract?
3. One of our concerns is that what happens if the buyer does not finance in 6-12 months and is still sending us payments... can the contract be written so that the deadline to bank finance is the absolute deadline?
4. We really didn't want to take monthly payments, but we don't mind allowing the buyer about 6 months (till the end of the year) to cash us out. Is there another way to do this with more simple terms to compensate us for our risk and costs?.. for instance, could we just ask the buyer to agree to revise the purchase price to $154,900 ($5000 more) and we would allow them 6 months to install the well with no interest and no payments until they bank finance? (We think an additional $5,000 less the attorney costs would make the extension of time and the risks we would be assuming worth doing.) Can a seller contract be written like that? THANK YOU FOR TAKING YOUR TIME TO HELP US!