My question involves real estate located in the State of: Ohio
Wife and I own vacant land that we wish to sell to a young couple. They do not have enough to pay in full so we exploring our options. We have a title company and their staff attorney ready to prepare documents whichever way we go. We are curious about any pitfalls to any vehicle we select.
LAND CONTRACT: We started looking here but find a dwelling is required for a Land Installment Contract. Ohio Revised Code 5313.01(B). "(B) "Property" means real property located in this state improved by virtue of a dwelling having been erected on the real property." Can we write an installment sales contract and just not call it a "Land Installment Contract"?
OPTION CONTRACT: Next we look at an option contract, where we would use the same payment terms as the land contract agreement. Call the down payment a payment for the option, and schedule 8 yearly payments to renew the option until they pay it off.
DEED TO THEM AND CARRY A NOTE: Pretty self explanatory, conventional sale with us financing them over 8 years. Seems the simplest method.
TENANCY IN COMMON: We add them to a new deed with their proportional share. Could regularly update deed as their share increases. Worried about the what if they get a 1/2 interest and stop paying, we would be able to market it, but would our 1/2 interest be sellable?
Factors to consider: We originally bought this land so that this couple could eventually buy it. We are holding it for them and selling for what it costs us, we're not profiting on it in any way. No interest or fees UNLESS they default (really don't expect that). It is a non buildable lakefront lot that has an income generating boat dock on it. Last two year we are letting THEM keep the dock income to help create a down payment. They have been tending to the dock and the land for the last 12 years and were caught off guard with a sudden "health issues" sale so we stepped in to help them. They will be paying all associated costs.
Because we are not profiting we are looking for the safest vehicle for us and the least costly means for them.