whether for residential or commercial land/lots, the contract must contain all information pertaining to the transaction, such as the agreed-upon purchase price or any related financial arrangements. upon reaching mutual terms, the parties shall sign and execute the document– setting a closing date and any period in which the land is to be surveyed.

land contracts were a popular way of buying a home back in the 1970s and 1980s, but fell out of favor in recent years as creative financing made it easy for almost anyone to qualify for a mortgage. basically, the seller is financing the purchase instead of going through a mortgage lender. the main advantage of a land contract is that it’s fairly easy to qualify for. a land contract is often viewed as a way to “pay down the purchase price” before obtaining a regular mortgage to buy the property outright. on the downside, a land contract doesn’t have many of the protections that come with a mortgage.