Land Contracts and Installment Sales

Land contracts and installment sales are methods of buying and selling real estate. In a land contract, the seller retains the title to the property while the buyer makes regular payments over time, usually until the full purchase price is paid. Once paid, the title is transferred to the buyer. An installment sale is similar; however, it usually involves a formal mortgage and the buyer receives the title at the start, making monthly payments. Both arrangements offer flexibility for buyers who may not qualify for traditional financing, but they require careful consideration of the terms and obligations involved.