Lou Diamond Phillips. Lou Diamond Phillips Net Worth is $5 Million. Lou Diamond Phillips is an actor, film and television director with a net worth of $5 million. Lou Diamond Phillips has earned his net worth as a well known actor of films and television with one of his m. Lou Diamond Phillips (born L...
DEFINITION of 'Land Contract'. An agreement between a buyer and seller of property in which the buyer makes payments toward full ownership (as with a mortgage), but in a land contract, the title or deed is held by the owner until the full payment is made. land contract can be thought of as a lease with an option to buy. Certain states have more generous legal rights for land contract holders than others. As a result, the world of land contracts can be difficult to navigate.
Put every term of the land contract in writing. In real estate, land contracts must be documented in writing to be considered legitimate. The nature of a land contract gives the seller additional protection in case the buyer defaults on the loan. The seller most likely will record a deed or mortgage in the county records office where the property is located. In most cases, the buyer pays a down payment to the seller. In many cases, the seller secures the loan by using the property as collateral. If the buyer defaults, the seller is authorized to foreclose and repossess the property. Further, all payments made under the land contract are forfeit if the buyer defaults.