Some examples of typical land contract terms that an individual may want to incorporate in their land contract agreement may include the following: Accordingly, you and the seller can enter into a land contract to make this deal legally valid and enforceable. You and the seller agree that the seller will finance the sale of their home, but only if you agree to make monthly installments on the home until the seller has recovered the full amount of the sale price, plus any agreed upon interest. The catch with these types of contracts, however, is that the seller will be the one financing the sale of their own land until the buyer can pay it off rather than a mortgage lender like a bank.įor example, imagine you wish to purchase a home, but do not have enough money in the bank to do so. When compared to a home mortgage loan, a land contract is often a faster and less expensive way for a buyer to acquire financing to purchase a specific property or home. A land contract, also known as a contract for deed agreement, enables the person buying land to pay monthly installments on the property in question until it is fully paid off, as opposed to having to obtain a mortgage. In the majority of cases, a land contract will be used in a sale for a residential piece of property, such as a house. In general, a land contract can be described as a type of contract that involves the sale of land or other forms of real estate.
