Land Contract, Lease & Purchase Contract

Land Contract

A land contract is a contract between a buyer and seller for real estate in which the seller provides the financing to buy the property at an agreed upon price. Generally, the seller retains title to the property while allowing the buyer to take possession. The buyer then makes scheduled payments, with or without interest to the seller until the purchase price is paid in full. An initial down payment from the buyer to the seller is usually required. Land Contracts offer benefits to a buyer who might not otherwise be able to obtain financing. The seller may have more potential buyers by offering the property for sale under land contract, but assumes all the requirements and risks a bank may encounter.


Purchase Contract