Posted by Irwin on December 20, 1998 at 20:54:42:
I can’t go into a lengthy discussion on the law here, so I’ll just outline the bottom line.
A l/o is a very low quality (strength) of title, or equitable ownership. In fact, most courts hold that a l/o isn’t ownership of any kind. Therefore, your claim of rights in the property can be defeated by various claims of others.
A recorded land contract provides a stronger claim of equitable title. It is difficult to defeat.
A deed, subject to a mortgage lien is the hightest form of legal and equitable title.
If you have a choic between buying using a l/o, or a land contract, always go with the l/c.