An installment contract for the sale of land whereby the seller (vendor) holds legal title and the buyer (vendee) has equitable title until the sales price is paid in full.
A land contract, also known as a contract for deed or installment land contract, is a legal agreement between a buyer and a seller for the sale of a property.
In a land contract, the buyer agrees to make payments directly to the seller, rather than obtaining financing from a bank or other traditional lender. The seller retains legal title to the property until the buyer completes all the payments required under the contract.
The terms of the land contract typically include the purchase price, the down payment amount, the interest rate, the payment schedule, and the consequences of default or breach of the agreement. Once the buyer has fulfilled all the terms of the contract, the seller transfers the legal title to the buyer.
Land contracts can be useful for buyers who have difficulty obtaining traditional financing, as well as for sellers who are willing to offer financing and potentially receive a higher purchase price. However, there can be risks and complications involved, so it's important to consult with a real estate attorney before entering into a land contract.