Installment Land Contract

By on October 23, 2009

Here’s another free form courtesy of The Investor insights Free Forms Friday!

So, what exactly is an installment land contract?

Installment land contracts or contracts for deed are a security agreement between a seller and a buyer. It’s a great way to seller finance your deals. Here’s how it works:

  • The Seller agrees to sell a property by financing the purchase for the Buyer.
  • The Seller retains legal title and the Buyer receives equitable title.
  • The owner-carried financing can include an existing mortgage balance or the property can be free and clear.
  • Upon payment in full, the Seller hands the Buyer a deed to the property.

Voila! Another successful owner-financed transaction! Here’s the form for you to print out, email or save to your computer.

Click here to get your FREE installment land contract.

Remember, we’re not lawyers so these free real estate forms are provided for educational purposes only. If you decide to use them, make sure you have a competent legal professional give you the thumbs up!  For more info see our website terms and conditions of use.

About Susan Lassiter-Lyons

Susan is the Amazon #1 best-selling author of Getting the Money: The Simple System for Getting Private Money for Your Real Estate Deals and founder of the award-winning real estate blog, A real estate investor since 1994, Susan has raised $26.2 million in private money and participated in more than 600 transactions as an investor, broker, lender, syndicator and advisor. Susan is a dedicated trainer and her training, seminars and coaching programs have transformed the lives and businesses of thousands of real estate investors worldwide.


  1. James Burns, Esq.

    October 23, 2009 at 12:51 pm

    This installment contract is insufficient and prone to create lawsuits, has no protective disclosures and does not provide for tax benefits. Cookie cutter if ever there was one. I suggest offering it as the starting framework and then mention a caveat just so some person does not try to use it as this would blow up like high explosive.

  2. Jeffrey Smith

    October 23, 2009 at 12:58 pm

    Check your state laws with a good real estate attorney, because the legal interpretation of the Installment Land Contract (ILC) varies widely.

    Upon default, in some states the “buyer” can be evicted just like an ordinary tenant. In other states, the “buyer” has the right to due process for a judicial foreclosure, which can take months while the deadbeat stays in the property making no payments.

  3. antoine

    October 23, 2009 at 1:02 pm

    I have done a land contract before, and my CPA assured me I was lucky for two reasons:
    1. for tax purposes, equitable title means nothing, and only the title holder can use all the tax advantages of the sale ( amortization adn depreciation)
    2. if you do a landcontract, make sure you stay on the insurance as that is the way lenders find out the property “chnaged hands”, and they will call the loan
    Lastly, the IRS may call you on a 1031 exchnage not done and cost recovery taxes are due immediately if not reinvested within 180 days.

  4. Jon

    October 23, 2009 at 2:10 pm

    Installment land contracts are great when used properly. On my last deal I bought a property using an installment land contract. I was planning to rent the property out but someone made me an offer for a lot more than what I paid for it. This was 1 1/2 months after I got the property. Now, the buyer was using FHA financing but because it was an installment land contract and the owner retains legal title, I drafted the purchase contract between the owner and my end buyer. On the HUD-1, I became just an additonal payee on the seller side. Doing it this way, I did not encounter any title seasoning issue and closing went through with out a hitch.

    I used installment land contract in this deal not to get tax benefits but because I needed to ficilitate a fast sale for the owner who was moving to another state and does not want to be saddled with double payments, a rent payment and a mortgage payment. And he did want to be an out state landlord. I think one just needs to know when to use this strategy and when it is used properly it works great.

    Lastly, I just want to say Susan keep up the great work. Your site is one of the handful sites that I enjoy going back to again and again.

  5. James Burns, Esq.

    October 23, 2009 at 4:42 pm

    Antoine – not true with what your CPA stated. The tax benefit can be preserved under agreement until title is fully transferred which is after fulfillment of the last payment…this is America and people are free to agree.

  6. Toby Beavers

    November 6, 2009 at 12:16 pm

    james – thanks for your input.

    Your site has some problems:I clicked onto Learn More
    “How We Help With Foreclosures” on your home page and get this link:

    Then IE will not allow me back on your site….Very starnge

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