Land Contract Template — Sell or Buy Land With Flexible Terms
A Land Contract is a private agreement between a buyer and a seller for the purchase of land. Instead of using a traditional mortgage, the buyer makes payments directly to the seller over time — and receives full ownership only after the final payment.
LegalSimpli’s Land Contract template makes it easy to outline the terms of your land sale in plain English. Whether you're selling rural property, vacant land, or a small parcel, this form helps ensure that both parties are protected.
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Table of Contents
What Is a Land Contract?
A Land Contract (also called a Contract for Deed or Installment Land Contract) is a legal agreement where a seller finances the buyer’s purchase of land. Instead of the buyer getting a loan from a bank, the seller acts like the lender — and the buyer pays in installments.
The buyer gets the right to use the land and make payments over time. Once all payments are made, the seller transfers full legal title to the buyer through a deed.
- A buyer cannot qualify for a traditional mortgage
- The land is undeveloped, rural, or hard to finance
- The seller wants to offer flexible terms to make the deal happen
It’s a legally binding way to buy land — with payments, interest, and final ownership clearly spelled out.
When Do You Need a Land Contract?
A Land Contract is ideal in situations where the buyer and seller agree to handle the sale privately — without going through a bank, mortgage lender, or escrow company.
This arrangement is especially common for vacant lots, family land transfers, rural acreage, and for-sale-by-owner transactions. It gives buyers a path to ownership while protecting the seller’s interest until the contract is fully paid.
What Happens If You Don’t Use a Land Contract?
Without a proper Land Contract, the deal might fall apart — or worse, lead to financial or legal trouble for either party.
The buyer may not have legal proof of their right to use the land
The seller may have no way to enforce payment terms
There’s no formal process for what happens if the buyer defaults
The buyer may assume ownership rights they haven’t yet earned
Title disputes may arise later, complicating resale or development
How to Fill Out a Land Contract
- Step 1: List the Buyer and Seller
Include the full names and contact information of both parties.
- Step 2: Describe the Property
Use the legal description of the land (not just the address), which can be found on tax records or the current deed. Be specific.
- Step 3: State the Purchase Price and Payment Terms
Clearly outline:
- The total purchase price
- Down payment (if any)
- Interest rate (if applicable)
- Payment schedule (monthly, quarterly, etc.)
- Final payment (balloon payment, if any)
- Step 4: Define the Responsibilities of Each Party
Clarify who will pay for taxes, insurance, repairs, or upkeep during the contract period. Usually, the buyer takes on most responsibilities once they take possession.
- Step 5: Include Default and Forfeiture Terms
Explain what happens if the buyer misses payments — including grace periods, late fees, or potential loss of rights.
- Step 6: Set the Title Transfer Conditions
State that the deed will be transferred once the contract is paid in full. Include what kind of deed will be used (e.g., warranty or quitclaim).
- Step 7: Sign and Notarize the Contract
Both parties should sign, and in most states, the agreement should be notarized. Some counties may require filing the contract with the recorder’s office.
LegalSimpli’s Land Contract template walks you through each of these sections, using clear language to help prevent mistakes.
Common Questions and Misunderstandings
- Is a Land Contract legally binding?
Yes. Once signed by both parties, a Land Contract is legally enforceable. The buyer and seller are both obligated to follow its terms.
- Does the buyer own the land right away?
No. The buyer typically gains possession and use of the land, but legal title remains with the seller until the contract is paid off in full.
- What if the buyer stops making payments?
The contract should include terms for default. In most cases, the seller can terminate the agreement and reclaim the land — but procedures vary by state.
- Can I use this for property with a house on it?
Yes, but land contracts are more common for raw or undeveloped land. If there’s a structure involved, be sure to describe it fully and consider getting legal advice.
- Do I need to record the contract with the county?
Some states require it, others do not. Even if it’s not mandatory, filing the contract with the local recorder’s office creates a public record and protects both parties.
Related Documents You May Need
Depending on your situation, you may also need:
- Promissory Note
To detail the loan terms if separate from the contract
- Deed (Warranty or Quitclaim)
To officially transfer title after full payment
- Property Disclosure Form
To share known issues with the land
- Power of Attorney
If someone will be signing on behalf of either party
- Installment Payment Ledger
To track payments over the contract period
LegalSimpli offers lawyer-reviewed templates for each of these, making it easy to complete your land sale smoothly and affordably.
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