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[Music] for Real Estate Concepts Made Simple go to prepagent.com a land contract is a written legal contract or agreement used to purchase real estate such as vacant land a house an apartment building a commercial building or other real property in a land contract the buyer makes payments to the seller until the purchase price is paid in full this makes it a form of seller financing the land contract functions as a security device a buyer and a seller signed the land contract covering agreed upon terms and conditions of the sale upon satisfaction of all contract terms and conditions including payments of the purchase price over a specified time period the legal title of the property transfers from the seller to the buyer by way of a deed used to convey title remember Adidas evidence of the transfer sowi land contracts used one possible reason is the buyer may be interested in the real estate for sale but because of their credit history or some other reasons they cannot obtain approval