Land Contract


Land Contract
An agreement between a buyer and seller of property in which the buyer makes payments toward full ownership (as with a mortgage), but in a land contract, the title or deed is held by the owner until the full payment is made. This type of contract is technically not a legally binding agreement and, therefore, many different types of payment formats can be found.

As in a standard mortgage, there is an agreed upon price and payment schedule, but the payments are often not amortized evenly, so that a large balloon payment may be required to complete the purchase. Also known as an installment purchase contract or an installment sale agreement.

A land contract can be thought of as a "lease with an option to buy". Certain states have more generous legal rights for land contract holders than others. As a result, the world of land contracts can be difficult to navigate. As such, a land contract buyer must be very careful to ensure that the terms of the contract are legally binding in case a dispute arises in the future.

Land contracts are often used by purchasers that would not otherwise qualify for a mortgage, or by investors who wish to complete a purchase faster than a regular mortgage would allow.


Investment dictionary. . 2012.

Look at other dictionaries:

  • land contract — n: land installment contract at contract Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • land contract — n. a contract in which a purchaser of real estate, upon making an initial payment, agrees to pay the seller stipulated amounts at specified intervals until the total purchase price is paid, at which time the seller transfers his interest in the… …   English World dictionary

  • Land contract — A land contract (sometimes known as a “contract for deed” or an “installment sale agreement”) is a contract between a seller and buyer of real property in which the seller provides financing to buy the property for an agreed upon purchase price… …   Wikipedia

  • land contract — 1. a contract for the purchase and sale of land. 2. a contract in which a purchaser of real estate, upon making an initial payment, agrees to pay the seller stipulated amounts at specified intervals until the total purchase price is paid, the… …   Universalium

  • land contract — 1. a contract for the purchase and sale of land. 2. a contract in which a purchaser of real estate, upon making an initial payment, agrees to pay the seller stipulated amounts at specified intervals until the total purchase price is paid, the… …   Useful english dictionary

  • land contract — See land sale contract …   Black's law dictionary

  • land contract — See land sale contract …   Black's law dictionary

  • land contract — A contract whereby one party agrees to sell and the other to purchase real estate. Pike Rapids Power Co. v Minneapolis, St. P. & S. S. M. R. Co. (CA8 Minn) 99 F2d 902. A contract for the transfer of the title to real estate in consideration of a… …   Ballentine's law dictionary

  • land contract — Contractual arrangement used in some states under which a buyer purchases real estate from a seller over a period of time, usually by making periodic installment payments. Title is not conveyed to the buyer until the final payment is made. Also… …   Financial and business terms

  • installment land contract — Type of contract by which buyer is required to make periodic payments towards purchase price of land and only on the last payment is the seller required to deliver a deed. Also called a contract for deed or long term land contract. See also land… …   Black's law dictionary


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