What is a Land Contract? - Definition

What is a Land Contract? - Definition
A land contract exists when a seller acts as the bank (provides the financing) in a purchase transaction (typically on existing real estate). This type of transaction usually involves a significant cash down

payment, and the terms are generally determined by the conditions involved with the purchase (for example current market conditions). Generally, in the case where a deed transfer is involved, the deed is not transfered until the conditions of the contract are fulfilled. A land contract can be done on many different types of property, including: Commercial, Residential, Land, or Mobile home with Land.