When you enter into a land sale finance contract with LandCentral, we want you to understand how to read it. There are many important pieces of information about your property and your loan that are described, and we want to walk you through some of the important points.
Here is a sample contract with points “A” through “T” (the red letters) that explain each line item. Each are explained to help you better understand your new contract with LandCentral.
Item A: This shows you the county and state your new property is located in.
Item B: Here you will find the size of your parcel, the LandCentral property number (our internal number), and also the APN number (this is the Assessor’s Parcel Number the county uses for identification).
Item C: The Down Payment is the money that you initially paid to purchase the property. This money goes toward principal balance reduction.
Item D: The Sales Price is the amount of money that you initially agreed to pay for the property. This amount is the price you are paying before any of your down payment is subtracted.
Item E: The Amount Financed is the sales price less the down payment amount. This is the amount that your finance account will be opened with.
Item F: Interest Rate – This is the percentage that you will be charged in addition to your loan amount. Interest charges are based on your principal balance amount, so if you are able to make additional payments each month over your minimum, you will pay less in interest over the life of your loan.
Item G: The Number of Payments shows you how long you will be paying on the loan. In this example, there are 84 required payments. If you want to think of this in years, . That means you will make 7 years of loan payments to own the property.
Item H: The Monthly Loan Payment is the amount of money you will pay toward your account each month. This is not to be confused with the Total Monthly Payment, which is the required payment to be submitted each month (see item L).
Item I: Monthly Property Tax is charged to pay the property taxes. The yearly property taxes are broken down over the course of 12 months.
Item J: If your property happens to be within a Homeowners’ Association, then you will be paying the required HOA fee each month. If the HOA fee is charged yearly, and the fee is broken down over the course of 12 months for you to pay.
Item K: The Monthly Processing Fee is a fee that Land Central charges for the maintenance of your account. This fee includes free payment processing, mailings, billing and any dealings with the county on your behalf.
Item L: Total Monthly Payment is the monthly loan payment + the monthly property tax + the HOA payment + the monthly processing fee.
Item M: The Cost of Credit is the amount that you will be paying in interest and fees, above the original purchase amount of the property. This amount is calculated by taking the .
Item N: The Transfer Tax is the amount of the deposit that goes toward your loan balance.
Item O: Document Fees cover all fees associated with the title transfer and the final deed recording,
Item P: Transfer Taxes are taxes that counties collect for the sale of any real estate.
Item Q: The Deposit is .
Item R: Cash or Equivalent is if you paid cash for your down payment.
Item S: Personal Check is if you paid your deposit in the form of a check.
Item T: Credit Card is the most popular payment method; your deposit amount will show here if you used a credit or debit card to make your purchase.
We are always here to answer questions and concerns for our customers. We hope that this breakdown gives you a better understanding of the line items on your contract. If you still have questions feel free to contact us Monday – Friday, 7 a.m. to 4 p.m. PST at 1-877-257-0231.