What describes a land contract?

A land contract, also known as a contract for deed, is a financing arrangement where the buyer makes payments directly to the seller in exchange for the right to occupy and use the property. This type of contract allows the buyer to take possession of the property while making payments, often with an option to purchase the property outright at a later date. It typically involves the seller retaining the title until the buyer fulfills the payment obligations outlined in the contract. This arrangement can be beneficial for buyers who might not qualify for traditional financing but are able to make periodic payments to the seller.

In contrast, rental agreements focus on leasing the property rather than providing a path to ownership, which differentiates them from land contracts. Lease arrangements with potential tax benefits are also not relevant, as they pertain to a different type of agreement where ownership is not transferred. Similarly, contracts related to commercial properties fall into a separate category and do not encompass the specific nature of land contracts that involve direct buyer-seller financing.