Michigan Continuing Education COURSE
Online: Land Installment Contracts
Not everyone can qualify for a mortgage. Seller financing in the form of a land installment contract—aka land contract, installment contract, or contract for deed—provides an alternative to traditional financing.
While this financing method typically benefits the buyer with perks like a low down payment and lower transaction costs, it also favors the seller. It’s much easier for a seller to cancel a land contract and reclaim the property in the event that the buyer defaults, partially because the seller keeps the title to the property until the loan is paid off. Land contracts are risky for buyers because they don’t carry the same consumer or foreclosure protections available with third-party financing.
Land contracts can carve a path to homeownership for buyers who may otherwise not qualify for traditional third-party financing. This course will help you pinpoint how best to serve your clients should they choose to pursue this financing option.
- Defining land installment contracts
- Buyer advantages and disadvantages
- Seller advantages and disadvantages
- A land contract in action