A Land Contract is a legal document that sets the terms and conditions for the purchase of land. This purchase finalizes when one party provides the other with a determined amount of cash or trade.
A Land Contract goes by alternative titles:
- Land Purchase Agreement
- Land Sale Contract
- Land Purchase and Sale Agreement
A Land Purchase and Sale Agreement works similarly to an ordinary purchase and sale agreement. The terms, protections, and time limits are all included in the agreement.
Land Contracts are extremely useful to both parties as they present numerous benefits to both the buyer and seller.
- Buyer benefits: This type of agreement can be beneficial to buyers who do not have a good credit history. Buyers unable to get a mortgage can pay directly to the seller.
- Seller benefits: Sellers can ask for a higher price by offering this type of contract to buyers because it does not require a buyer’s credit history. It would also be easier to ask for a larger money down payment.
Use our template to make it simple to create a Land Contract.
Installment Land Contract
Using an Installment Land Contract offers you another way to complete the transaction for land.
Deciding the payments will be paid in installments, each month, means you are making an Installment Land Contract.
The selling party can act as a bank and receive the payments, and the purchasing party will have the land.
If the selling party does not receive payments, they will have the right to retake the land from the buyer.