Recording A Land Contract

Summary

In Ohio, its generally advisable to record a land contract to protect both parties. Unrecorded land contracts can lead to disputes over property ownership and potential tax implications. Consult a real estate attorney for personalized advice.

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Never recorded land contract
What state are you located in, ****? The rules for recording land contracts vary by state.
Ohio
In Ohio, it's generally advisable to record a land contract to protect both parties. What specific issue are you facing with the unrecorded land contract?
The buyer on the land contract wants to sell house, which is fine but title company saying it may cause issue since never recorded
What is the exact issue the title company is pointing out?

In Ohio, unrecorded land contracts can lead to disputes over property ownership. It's advisable to consult a real estate attorney.
That since it was never recorded it would be more as like we are selling it to new buyer and we just don't want to get hit with big tax bill for the difference that we agreed to on contract and what new buyer is paying
What is the price difference between the original contract and the new buyer's offer?

In Ohio, capital gains tax may apply if you sell a property for more than its purchase price.
45k
What was the original purchase price of the property?
That we paid or land contract price?
The original purchase price you paid for the property. This information will help in calculating potential capital gains tax.
40k but put around 25k into improvements
What is the estimated value of the property after the improvements you made? This could potentially offset the capital gains tax.
Back then it was probably *-95k.
What is the current market value of the property? This will help determine the potential capital gains tax.
It is being sold for 130k
What is the agreed price on the unrecorded land contract? This will help determine if there's a significant difference with the new buyer's offer.
85k
What is the new buyer's offer for the property?
130k
What is the duration you've held the property? This is important as long-term capital gains tax rates may apply if you've held the property for more than a year.
*-7 years
In Ohio, long-term capital gains tax rates apply for properties held over a year. The rate varies based on income. Consult a tax professional for precise calculations.
Can a land contract be recorded 5 years after being signed
What state is the land contract in? The rules for recording land contracts can vary by state.
Ohio
In Ohio, a land contract can be recorded anytime after being signed. However, it's generally recommended to do it as soon as possible to protect your rights.