Ttykuu

I've been living at this place for about two months and my lease looks pretty typical. Nothing unusual. I've had no problems so far.

Today my landlord called me and explained something about the city wanting to fine him for a rental inspection that only covers the outside of the house, and so he's outraged that he has to pay the fine for some guy to just look at the house from the side walk. He then explained that his plan is to present me with a "land agreement" and also a contract to invalidate the current lease so that I'm just paying him for the land agreement instead. I'm pretty confused about this whole thing and it doesn't seem right..

Through some quick googling it sounds like I'd suddenly have to pay taxes in he property as if I owner it? And I suddenly become responsible for paying the fee he's complaining about? Not to mention I don't know if any tenant rights apply anymore?

I'm deeply confused and would like to know if this is a thing many landlords try to do and whether there's anything I should start doing to cover myself if my landlord starts getting weirder.

Update: he says it could be a few months before he has the land contract for me to sign. I haven't agreed to anything and told him I'm going to check with a lawyer before taking any action.

A "land contract" is not a way of renting property, it is a way of purchasing property on an installment basis without bank financing. It is Ohio's version of what in some other places is known as "contract for deed".

See "What is a Land Contract in Ohio" and "How Land Contracts Work" The actual law is Section 5313.

In a land contract, the buyer has equitable but not legal title. The buyer normally pays all taxes and fees, and is responsible for maintaining the property, just as if s/he has bought the property. But if the buyer defaults, all payments and equity would be forfeit to the seller. Until the buyer has paid 20% of the purchase price, or made 5 years of payments (whichever comes first) a single3 missed payment constitutes default and can lead to the buyer being evicted with all payments to date going to the seller, the buyer coming out of the deal with nothing.

Also, if the seller still has a mortgage and defaults, the buyer may lose everything paid to date. The buyer does not have the protections that a lease gives a tenant, nor the protections that legal title gives a purchaser via a traditional mortgage.

Land contracts are often used when the buyer cannot qualify for a mortgage.

The buyer pays interest, and it is often at a higher rate than the current rate on a mortgage.

Land contracts are often a form of predatory lending, but for some buyers they make sense. A buyer needs to carefully review the contract with a lawyer knowledgeable about land contracts, and consider the risks and benefits of this form of financing.

As I understand it, there cannot be a valid land contract for one apartment in an apartment building. A land contract must be for title to the land and all fixtures, including all buildings, on it.

It is not clear just what the OP's landlord (LL) has in mind. It may be that LL plans to offer a "land contract" in which the purchase would be completed only after a very long time, with the idea that the OP woulkd simply default when s/he wanted to move. Such a default could harm the OP's credit. There seems no benefit to the OP in such a scheme compared to a lease, unless LL will lower the price significantly, taking into account maintenance costs and taxes, which OP may well be expected to pay under a land contract.

OP needs to very carefully consider just what is being offered, and its risks and any possible benefits. Details of the contract will matter.

Tax wise, you don't have to pay taxes on someone else's property. The same goes for the inspection. He has to be inspected because he is renting to someone else, you aren't.

He isn't selling you land, if you are paying him for the apartment, you are still a renter, so no matter what he calls it, the building must be inspected, because someone lives there.