We just encountered a situation that has caused my rear end to pucker really tightly------since it happened to me.  Could easily be affecting some of you.

I purchased a farm on installment contract from a private individual quite a number of years ago.

Lots of equity in the ground now...............contract still has about 10+ years to run.

I used an attorney (now deceased) who was supposedly an el primo real estate attorney-----the guy and I had several mutual large, heavy-hitting clients while he was alive..........and I therefore spent a lot of time in his office over the years.  I never saw the guy make a mistake.........and some of the deals were literally millions.

The problem--------- I had always thought that in order for there to be a prohibition on prepayment of contracts, there had to be specific language so stating.  Turns out that such relates only to commercial lenders.

The Iowa BAR form alludes to the fact that the installment contract can only be paid in a manner OTHER THAN the stipulated contracts (including the length of time), if the contract says so specifically.

In my contract, that specific language had been xxxxxed out------by my attorney, who drafted the cotnract.

The attorneys are researching the issue, but believe I am hooked.  Further, the default provisions are not favorable to merely defaulting and paying off the contract when they file notice.........appears there might be an option that they can merely take back the farm.

I am comfortable that we have a way to accomplish what I want to do, even if we have to leave the contract in place...............so I do have an acceptable Alt B..............and, the interest rate is slightly smaller than the bank's anyway...............but it is a piece of crap, that could have been avoided at the front end.

So........if there is any possibility that you might want to use any market or other equity that has been built up in land purchased under a private party installment contract in Iowa..................a word to the wise---------make sure that the right to pay the balance at any time is specifically stated.........even if you have to give up a few years at the front end during negotiations where you agree to not accelerate payments  for a few years.

Apparently this is not necessarily a known thing among all attorneys-------or mine just forgot it at the time.

If the apparent results change, I'll let you know.