Land Contracts: How They Work, and Why They Can Be Good for You
In an environment where it is difficult for some buyers to qualify for financing with a traditional mortgage, a land contract may be a viable option. A land contract is also called a Contract for Deed, or an Installment Land Contract. Regardless, they all work the same.
The way a land contract works is that the seller retains legal title to the property and the buyer acquires what is called equitable title. This means that the buyer has the legal right to possess and use the property for their own purposes as they fulfill their obligations under the land contract. …