Money and financing

Land contract

Also called contract for deed.

A land contract, also called a contract for deed, is a sale where the buyer makes payments directly to the seller over time and the seller keeps legal title until it is paid off, instead of the buyer getting a deed and a mortgage at closing. If the buyer defaults, getting the property back can be slower and less certain than foreclosing on a normal loan.

Why it matters

Holding title instead of a deed of trust changes what you have to do to get the property back if the buyer stops paying.

General information, not legal or tax advice.

See also

Back to the glossary