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A land contract is a written legal agreement for purchasing real estate, including various property types. In this arrangement, the buyer makes payments to the seller until the full purchase price is settled, functioning as a form of seller financing. The land contract serves as a security device, with both parties signing it to outline the sale's terms and conditions. Once the contract's requirements, including payment, are met, the property's legal title transfers from the seller to the buyer via a deed. This method can be advantageous for buyers unable to secure traditional financing due to credit issues or other reasons.
