Whether you’re a longtime veteran of real estate or buying your first home, understanding the many available homebuying options is daunting. Today we’ll talk about another of those options: the land contract. (Spoiler alert: a land contract and a contract for deed (CD) are basically the same!)
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What Is a Land Contract?
Despite the name, a land contract is not simply an agreement to purchase vacant land.
Essentially, a land contract is another term for contract for deed. According to Forbes, it is an agreement to purchase a property. In a land contract, a property owner finances the buyer’s purchase of the property. Then, the buyer makes payments to the owner over a set period of time. At the end of that period, the buyer pays off the remainder of the contracted amount, and they become the owner of the property.
Sound familiar? This is because the terms “land contract” and “contract for deed” essentially mean the same thing, and are often used interchangeably. Other terms that are commonly used in place of land contract or CD are: land installment contract, land contract of sale, land sale contract, installment sales contract, agreement for purchase and sale, agreement to convey, and executory contract.
All of these programs have the same fundamental structure, and only differ based on applicable state regulations. If you’re interested in a contract for deed in Minnesota, our team of experienced real estate professionals are here to help!
The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible. The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.
Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.