Land Contract vs. Lease/Purchase ?? - Posted by Paul

Posted by JT-IN on August 27, 2002 at 20:33:54:


As the Buyer you would much prefer a Land Contract… often referred to as a Contract for Deed. The protections afforded under the law, and this varies considerably from state to state, can be considerbly greateer that those afforded a Tenant, as is the case of a Lease with Option to Purchase; aka L/O.

As the Vendee (as you are affectionately called in a CFD), you may receive protection equivilent to that of a person who holds title and has a mortgage on the property. Being legally removed from the property, or having your property rights extinguished can revel that of a foreclosure… Again, not in every state.

So given the choise of either one, if I am buying I will take the CFD, and if selling I will offer the L/O.

Just the way that I view things…


Land Contract vs. Lease/Purchase ?? - Posted by Paul

Posted by Paul on August 27, 2002 at 18:14:02:

I am dealng with a seller that has a property free and clear.
I want to place a Tenant/Buyer in the property for monthly cash flow and back-end profit as well as L/P consideration or down payment.
What method would be more advantageous for me to use with a five year term.