Also known as: land contracts · contract for deed · installment land contract · agreement for deed
Written by attorneys · grounded in primary & secondary sources — see below
A contract for the sale of an interest in land. The agreement is subject to the statute of frauds and often takes the form of an installment sales arrangement in which the seller retains legal title as security until the buyer completes payment of the purchase price.
Logan Lane orally agreed to sell a parcel to Liam Larson for $200,000. Larson paid a deposit and took possession but Lane later refused to convey. Because the agreement concerned an interest in land, the statute of frauds barred enforcement absent a signed writing.
Lola Langley entered an installment land contract with Landon Long and paid half the price before a prior unrecorded claimant appeared. The court awarded the land to Langley to the extent of her equitable interest and granted the prior claimant a lien for the unpaid balance.
Select any source to read its text and confirm it supports the definition.
Lorenzo Lugo sold property to Layla Lane under an installment land contract. Layla took possession and made payments for two years before defaulting. The seller retained legal title and could pursue forfeiture or foreclosure remedies available under state law.
Linden Bank held an unrecorded interest when a buyer under a land contract paid part of the price. The court awarded the land to the bank but recognized the buyer's lien for amounts already paid under the contract.
No. A contract for the sale of an interest in land must be evidenced by a writing signed by the party to be charged unless an exception such as part performance applies.
Supporting sources
The buyer receives equitable title and possession while the seller retains legal title as security until the purchase price is paid in full.
Supporting sources
An earlier equitable interest under a land contract is generally paramount to a later leasehold unless the tenant qualifies as a bona fide purchaser for value without notice of the prior equity.
Supporting sources
The seller may pursue forfeiture in some jurisdictions or foreclosure proceedings that treat the contract as a mortgage-like security device.
Supporting sources
…Appeals affirmed. We granted discretionary review to consider the validity of the forfeiture clause. We reverse. When a typical installment land contract is used as the means of financing the purchase of property, legal title to the property remains in the seller until the buyer has paid the entire contract price or some agreed-upon portion…