Talk:Land contract

De-obfusification and Clarification Needed Okay, I have an MSc in Physics and yet after reading this article I don't quite know what a Land Contract is. Perhaps an explanation that doesn't rely on the technical differences between "equitable title" and "legal title", neither of which anyone will know without referring to yet another page. The article claims that "equitable title" pretty much means "owner", but the fact that Dustin Diamond is loosing his house despite holding "equitable title" seems to indicate to me that it's not at all equivalent to the term "owner". IE: Explain what equitable title is instead of using the term, and explain what the consequences are. I'm *guessing* that Land Contract is effectively an agreement that you're the "owner", but you haven't paid for it yet and in fact you and the seller haven't even agreed on the terms of the sale, so technically your "ownership" could be reversed should you and the seller not come to an agreement in the future. Yes? No? Little help? 65.95.239.51 22:00, 8 July 2006 (UTC)
 * I have expanded the article to try to explain "equitable title" and "legal title" and provided a numerical example for equitable title. However, it is a misconception (i. e. not true) that in a land contract, the seller and buyer have not agreed on the terms of the sale as stated in the above paragraph.  The equitable title (ownership) of the buyer may be able to be reverted (reversed) if the buyer defaults on his required payment(s) and the land contract allows such a reversion in case of default.  H Padleckas (talk) 07:54, 7 August 2008 (UTC)

Restoration of Land contract article
Within a day or so, I intend to revert this Land contract article to the 08:37 Aug 3, 2008 version and then probably (perhaps later) make some explanatory edits (and add Land contract under "See also" section in Real estate contract), unless User:Eastlaw explains why this reversion of the redirect should not be done. What is usually called a land contract is a special form of real estate contract which involves the sale of real property with seller-financing to be repaid by the buyer in installments. A land contract differs from the usual or conventional type of real estate contract which does not involve seller-financing, but may be a full price purchase at time of sale or involve provisions for third party lender-financing. My opinion is this difference is sufficient to merit a separate Land contract article of its own. An alternative possibility could be to move the contents of the Land contract article to form a section "Land contract" in the Real estate contract article, but land contracts must be discussed somewhere in Wikipedia. H Padleckas (talk) 01:34, 7 August 2008 (UTC)
 * Response copied from page User Talk:H Padleckas:
 * I don't mind if you want to revert the article back to what it was, just so long as 1) you clearly explain the differences between a land contract and a conventional real estate contract, and 2) you back up your explanation with reliable sources. The main reason I redirected the article in the first place was because I felt the article didn't really explain the distinction between these two types of contracts.


 * I am eager to see what you can do with this article. --Eastlaw (talk) 01:59, 7 August 2008 (UTC)
 * I have reverted the Redirect and added explanations to explain item (1) above and some additional reasons/advantages in using a land contract with seller financing vs. conventional real estate contract with third party lender financing. I have added a couple references explaining some of these points as requested in (2) above.  Some of the discussion I included is based on my personal experience with land contracts to which I was a party.  Yet to be added are possible drawbacks or "pitfalls" of using a land contract as mentioned in Reference 2 in the article.  H Padleckas (talk) 08:22, 7 August 2008 (UTC)

Single reference page does not exist
Not sure what to do about it. Everything Else Is Taken (talk) 20:30, 20 May 2012 (UTC)

Contract For Deed vs. Note and Mortgage Deed
In an article entitled "Installment Land Sales Contracts" By Drew Foley at: http://nc.invtitle.com/node/1603 the author covers the Land Contract and makes the point that in some states and esp North Carolina*, the courts have held that a Contract for Deed, Land Contract and Installment Contracts are effectively equivalent to a traditional Promissory Note and Mortgage Deed.

I mention this as many Sellers assume that, if the Buyer fails to make a single payment under the contract, that they may step in and reclaim the property - keeping any payments received as "damages."

They often assume that any payments made are entirely 'principle' payments but my understanding is that the IRS imputes an interest rate and the recipient is taxed accordingly.

Your article does not address these issues.

My professional experience is in the State of Florida where I first heard of this issue while a practicing Real Estate Broker in that state.

One last point, Real Estate Laws vary form STATE to STATE, not from Region to Region as was stated in (I believe) your first paragraph.

I commented here, as opposed to editing the article as I do not have the time (on dial-up) to do more research. But Take a look at the following pages containing information that is pertinent.

http://www.uslegalforms.com/contractfordeed/ "It will be a matter of determination for the court based on the facts in each purchase agreement."

http://nc.invtitle.com/node/1603 "This equity of redemption is the right that a borrower or mortgagor has to be able to redeem his property and take title back free from the mortgage.iv A mortgage is only a security for indebtedness, not a conveyance of land and as such if the indebtedness, all the principal and interest, is paid prior to the completion of a foreclosure then the borrower mortgagor gets his property back free from the mortgage."

http://www.findlegalforms.com/product/north-carolina-contract-for-deed/ "Reinstatement after Acceleration: Buyer may reinstate this Contract in the event of default and acceleration according to law;"

Submitted with the intent of being helpful. — Preceding unsigned comment added by MildLeeSnide (talk • contribs) 02:24, 4 June 2012 (UTC)

Clarifications in Installments section needed
Having some legal experience (Illinois) I understand most of the article; e.g. the technical difference between "equitable title" and "legal title" and think a little less 'legalese' could be used..

Perhaps this would be better for a typical reader: " As the buyer pays more toward the principal of the loan over time, his(her) equity (equitable title or equitable interest) in the property increases. For example, if a buyer pays a $2000 down payment and borrows $8000 for a $10000 parcel of land, and pays off in installments another $4000 of this loan (not including interest), the buyer has $6000 of equity in the land (which is 60% of the equitable title), but the seller holds legal title to the land as recorded in documentation (deeds) in a government recorder's office until the loan is completely paid off. "

The latter half of the Installment payments section about bankruptcy and it's implications could be written more clearly. It appears to be addressing some disadvantages, so perhaps sections on Advantages and Disadvantages are in order.

Also, the very last sentence of that section is very muddy, quite undecipherable and the cited reference [1] is now only a search engine and thus invalid.

RE: This sentence was: "This and a wide variety of other legal ambiguities has led to a trend toward restatement as mortgages to eliminate any incentives to not simply use the more clarified in law note and mortgage."

Based on the context, it might be trying to say something like this: " This and a wide variety of other legal ambiguities has led to a trend toward reinstating the use of mortgages [ or better yet "eliminating the use of Land Contracts"] to remove any incentives, and as a result, the disadvantages that these contracts have compared to the standard note and mortgage, which are more clearly defined in, and regulated by, law." I made this change to see who complains. It looks like the only reference has been dead for over a year now and I couldn't update the reference and left it as is in hopes someone can insert the original.

I also agree with the "State by state" vs. "Region by region" laws differing comment, but this is a U.S. Bias. Perhaps it should say something like "Applicable laws varying from place to place". -- Steve -- (talk) 18:16, 22 July 2013 (UTC)

50.127.224.207, Am I reading something wrong? Isn't "region" correcting a simple typo? &#32;-- Steve -- (talk) 03:37, 3 December 2013 (UTC)
 * If that's my typo, sorry - not intentional. Something strange here.  Wiki showing me that it was changed back TO bad spelling on Dec 2. ??  &#32;-- Steve --  (talk) 03:47, 3 December 2013 (UTC)
 * NEVER MIND. Wiki was showing me the previos edit TO bad spelling...  — Preceding unsigned comment added by EngineerSteve (talk • contribs) 03:50, 3 December 2013 (UTC)

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Different contracts of land
Voice 41.186.114.200 (talk) 09:36, 10 January 2023 (UTC)