Answer No. 1
A land contract is a contract between a seller and a buyer where the seller provides financing to the buyer. The buyer purchases the property for an agreed price and repays the seller in installments, many times with a balloon payment at the end. The seller keeps the legal title to the property while allowing the buyer to take possession of the property. The seller must transfer legal title to the buyer, once the purchase price has been paid in full. The terms of the contract differ from situation to situation. Many a times land contract is used until a buyer can obtain a traditional loan. A disadvantage to the buyer may be that he does not have legal title to the property since the seller retains legal title. Once the loan is paid and if the buyer missed the payment then only the seller can take back possession and can keep all money paid in. The buyer has a legal title to the traditional loan and it is a lien against the property. To take back possession the lender would have to go through the foreclosure process.
Answer No. 2
A land contract is a contract between the seller and buyer of the property in which the seller provides the buyer for financing the purchase, and the buyer repays the resulting loan in installments. The seller retains the legal title to the property in Land contract while allowing the buyer to take possession of it for most purposes other than legal ownership. The price of sale is paid in regular installments, generally with a balloon payment at the end to make the time length of payments shorter than in the corresponding fully amortized loan. When the full purchase price has been paid including interest, the seller is obligated to convey legal title to the property. An initial down payment from the buyer to the seller is usually also required by a land contract. The land contracts legal status varies from region to region. A land contract can be considered as a special type of real estate contract as it specifies the sale of a specific item of real estate between buyer and seller.
Answer No. 3
A land contract is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from the bank or lender, the buyer makes payments to the real estate owner until the purchase price is paid in full. Land contracts, commonly called installment land contracts, land sale contracts and contracts for deed where the buyer makes a down payment followed by periodic payments and the seller retains title to the property until all of the payments have been made. They are also sometimes known as owner-financed real estate sales. Land contracts vary from transaction to transaction. No grant deed is recorded in most cases. The buyer few times obtains a new mortgage loan at the time of purchase. Instead, the new owner sometimes payments to an intermediary. Keep in mind that such an agreement violates the lender’s guidelines. If the lender becomes aware of a transfer of title on the property, they can exercise the “due on sale” clause of the note. This would require a seller to refinance the loan or sell the property.