Real Estate Investing Blog

A Land Contract is the same as an Agreement For Deed or Contract For Deed.  It is a contract between the buyer and seller of a property, where the “seller” holds the title or deed to the property until all agreed payments have been made in full.  Think of it like a car loan.  You get a loan on your new car. The car dealer (or financing institution) will hold the title on your car until you pay off the loan, then you get the title to the car. 

This is the same thing here with real estate.  The seller of the property will hold the deed to the property until the buyer pays off the “loan”, then the seller will transfer the deed to the buyer. 

Peggy Parks

This entry was posted on Monday, January 29th, 2007 at 3:39 pm and is filed under How To Sell Properties, General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.