T HE INSTALLMENT LAND CONTRACT is an agreement to
transfer ownership of land.2 In this agreement the buyer promiseS
to pay the purchase price in installments over a period of
time. The seller usually promises to transfer possession of the
land at the time the contract is made, or soon afterwards. Under
8 mortgage-financed sale, title passes from seller to buyer when
the transaction is made. Under a land contract, the seller usually
does not transfer formal title to the buyer until the last installment
has been completed or until an agreed part of the purchase
price is paid. The downpayment under a land contract is usually
smaller than is customarily required when a mortgage is used.
Elefson, R. Vern; Raup, Philip M..
Contract Financing Farm Transfers With Land Contracts.
Minnesota Agricultural Experiment Station.
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