What is the difference between a land contract and a seller carryback?
A1: A true seller carry back allows for legal title to be conveyed to a third part or trustee who holds as security for the beneficiary (seller). In case of foreclosure, standard trust deed foreclosure procedures are used. In other words, the buyer receives a Deed of Trust which gives the borrower/buyer all ownership rights while the lender has an equitable interest in the property. A true seller carry back allows for fee simple ownership, which gives the buyer/borrower the right to sell, convey just as a borrower would have using a traditional lender. A2: A Land Contract also known as an Agreement for Sale is when the seller gives the buyer/borrower “equitable title”, while the seller retains legal interest in the property until the debt is satisfied. In case of default a land contract usually contains a clause protecting the seller and allowing the seller to forfeit the contract and evict the buyer. The difference between a land contract eviction and a trust deed eviction are the tim
