Montana Continuing Education COURSE
Land Installment Contracts
Not everyone can qualify for a mortgage loan. Seller financing in the form of a land installment contract—which may also be called a land contract, installment contract, or contract for deed—provides an alternative to traditional third-party lending.
While this financing method typically benefits the buyer with perks like a low down payment and lower transaction costs, it mostly 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 especially risky for buyers because they don’t carry the same consumer or foreclosure protections that are 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. We’ll help you pinpoint how best to serve your clients should they choose to pursue this financing option.