There may also be other benefits to using a field contract. When a third-party lender, z.B a financial institution, grants a loan, that third party has its own interest to protect itself from the other two parties involved, the seller and the buyer. Determining the right property and the value of the property to be used as collateral is important for the lender. For example, the lender generally requires a securities service, including title search and title insurance, by an independent securities company, an assessment and review of termites of the property to ensure that it has sufficient value, ground expertise to ensure that there is no intervention, and the use of lawyers to ensure that the financial statements are properly completed. These requirements of the third-party lender increase the establishment fees that the lender imposes on the seller and/or buyer. If the seller is also the lender, these fees are generally not charged by the seller and can result in savings and fewer complications. The seller`s position may also be that the buyer, if he requires one of these services, could bear the costs and make arrangements himself. In the case of land that is only relatively unded and where the seller is willing to finance, the price of empty land may be so low that conventional closing costs are not profitable and may be an obstacle to a quick and simple sale. Simple financing and a simple sales transaction can be a good selling point for a seller to offer a buyer.
Land contracts are often financed by sellers. However, in some cases, a borrower may apply for traditional bank financing for a land contract. A borrower who wants to build on land might want to finance the property through a bank loan. The terms of a home loan generally include a higher interest rate and are generally based on a shorter term. Land loans are often structured by a balloon payment rather than regular staggered payments. Often, owners who receive a loan for land refinance or refinance the loan with a term loan, once the property is built and a higher security value is set. While most land contracts can be used for many reasons, their most frequent use is a form of short-term financing from sellers. As a general rule, but not always, the date on which the total purchase price is due will be years earlier than if the purchase price was fully paid in accordance with the amortization plan. As a result, the last payment is a large balloon payment. Because the amount of the last payment is so high, the buyer can get a conventional mortgage from a bank to make the final payment.
Land contracts are sometimes used by buyers who are not eligible for traditional mortgages offered by a traditional credit institution, for reasons of unseated loans or poor loans or insufficient down payment. [Citation required] Land contracts are also used when the seller is sold with zeal and the buyer does not have enough time to arrange conventional financing. Canada has also been influenced by the treatment of Aboriginal claims and rights in other countries. In 1946, the U.S. government established an Indian Claims Commission, and in 1971 the Alaska Native Claims Settlement was established. In 1976, Australia passed an Aboriginal Rights Act; In 1978, Denmark granted sovereignty to Greenland. In 1963 and 1965, two bills were unsatisfactory and never implemented.