Quick Answer
An installment land contract is an agreement in which the buyer pays the purchase price over time while the seller retains legal title until the contract terms are satisfied. Terminology varies by jurisdiction including land contract, contract for deed, and executory contract.
Terminology Varies by State
The same basic structure goes by different names in different places: land contract, installment land contract, contract for deed, and executory contract. The legal treatment of each can vary significantly by jurisdiction. Using the term that matches your state law matters.
Key Questions for Buyers
- When does legal title transfer?
- Who holds the insurable interest for property insurance?
- What happens if I default?
- Are there forfeiture provisions or do I have redemption rights?
- How are property taxes handled during the contract period?
Key Questions for Sellers
- Do I retain the right to encumber the property during the contract?
- What happens if the buyer defaults?
- Do I need to foreclose or can I use forfeiture?
- How do I handle taxes and insurance?
- What disclosures am I required to provide?
Why Legal Review Matters
Texas and Arizona have different laws governing installment land contracts and similar structures. What works in one state may not work, or may produce different legal consequences, in the other. Legal review by an attorney licensed in the applicable jurisdiction is essential.
For more, see What Is a Contract for Deed?