There are several names for an Installment Land Contract, in some parts of the country it is known as a "Contract for Deed" and in other areas it is known as an "Installment Contract."

The Installment Land Contract is an agreement between the Seller and the Buyer for the purchase of real property in which the payment of all or a portion of the purchasing price is deferred.

The purchase price may be paid in installments over the period of the contract, with the balance due at maturity. When the Buyer completes the required payments, the Seller must deliver valid legal title by way of a deed. During the period of the contract, the Buyer makes installment payments on the purchase price and is entitled to possession and equitable title to the property. The Seller holds legal title and continues to be liable for payment of any underlying mortgage or loans.

The Buyer may assign and convey his/her interest in this contract or any part thereof provided, however, that such assignment or conveyance should not result in any impairment of Seller's position. Under no circumstances shall any assignment or conveyance release the Buyer from obligations under this "Land Contract" unless the Seller specifically releases the Buyer in writing.

Some things you might want to ensure are in your land contract:

• Agreed upon Sales Price, terms and number of payments at predetermined intervals and specific interest rate.
• Clauses in the Installment Land Contract that allows you to prepay the contract amount without penalties.
• Depending on usage you might want to ensure other clauses are added.
• As always with any Real Estate Contract you should consult with a Real Estate attorney.

Here is a Sample Installment Land contract

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