What is a Land Contract?
A Land Contract is a binding legal agreement, between the current land owner (Seller), and the interested purchaser (Buyer). It has also been called and a Contract For Deed or Installment Land Sales Agreement. Title is transferred when the full terms of the Land Contract have been satisfied. The ownership title stays with the land seller, till the final payment has been made by the buyer. When the terms of the Land Contract have been meet, it is the responsibility of the land seller to give the Buyer, title to the new owner and record or deliver the Deed in favor of the buyer, named in the land contract. The Land Contract, is sometimes called an Installment Land Contract, because the monthly payments are made to the land seller, in monthly installments, till the full amount has been paid off.
A land contract is a contract between the buyer and a private seller of a property, wherein the seller holds the title or deed to the property until all agreed upon payments have been made in full. Because the laws governing land contracts can vary by state, it is important that the governing laws be consulted to understand the particular rules that control a specific scenario. The property at issue within a land contract may be improved or unimproved, vacant, or a home or a commercial building. A down payment is usually made, and then equal monthly installments are paid until the property is paid for or until a balloon payment is required. A balloon payment is a lump sum of money that is due at a specified time, in this case at the end of the course of monthly payments. A land contract can be compared to renting or leasing with the option to buy, though they are not entirely one in the same. Such options are different in that the agreement is usually filed and is a legal arrangement,
by Rahul Rungta Send Feedback to Rahul Rungta In comparison to mortgages and Trust De More Details about In comparison to mortgages and Trust De here. Translate to Spanish Translate to French Translate to German Translate to Italian Translate to Portuguese Feature Articles: 7 Simple Steps to Freedom – Getting Your Home… Forex Strength Trading – Unique Tools For A U… Weightlifting Coach Shares Tax Lien Investing… Update to Tax Lien Investing Book Review: New… Investing in Tax Liens From Afar… Cut Expenses: 6 Ways to Cut Homeowner Insura… Cut Expenses: 8 Ways to Cut Auto Insurance Ex… – Why a Photocopy of your Birth Certificate won… Click here for more >> In comparison to mortgages and Trust Deeds, a land contract is a relatively straightforward legal instrument, but that doesn’t mean you should manage one with any less attention to detail. Unlike a mortgage or Deed of Trust, a land contract is usually a private affair between the property seller and buyer. Like any priva
