A land contract form typically includes information regarding the buyer and seller entering into the land contract, a legal description of the property for sale, the purchase price and down payment amount, Nolo says. Land contracts may also outline the amount of the monthly payment and the number of payments due.Continue Reading
A land contract is a written legal document used in a real estate transaction, Nolo says. It's a form of seller financing, where the buyer makes payments to the seller as outlined in the contract. The title legally transfers to the buyer once he fully satisfies the terms of the contract.
The buyer has equitable title to the property during the time period he's making payments to the seller, Nolo says. This means the seller cannot sell the property, nor can he subject the property to a lien that potentially otherwise interferes with the buyer's ability to take title of the property at the end of the contract.
If the buyer does not meet the terms of the contract or he fails to make the required payments, the seller can file a land contract forfeiture action in court, Nolo says. This means the buyer gives up his rights to the property, and the seller retains ownership of the property and keeps the money paid to him on the land contract.Learn more about Real Estate