owner financing occurs when the owner of real property agrees to accept payments directly from the buyer instead of receiving the purchase price in a lump sum from a lending institution. although south carolina laws governing land contracts are similar to those of other states, they do contain distinctive features. a buyer under a land contract takes title to the land subject to any preexisting mortgages or liens on the property. if the property is subject to a recorded mortgage or lien at the time the seller transfers title, the buyer takes the property subject to it, but has a legal claim against the seller for damages. it allows land contracts to contain forfeiture provisions that entitle the seller to seize the property without foreclosing or paying compensation if the buyer defaults at any time during the installment payment period.