What is a land contract or a bond for title?
Land contract or bond for title is a way for an owner to sell their property. It is similar to owner financing with one huge difference. In standard owner financing a seller gives a deed to the buyer and then receives a security deed (this will be discussed further in the next question) from the buyer as collateral for the loan. In the circumstance of a land contract or bond for title the seller does not give the buyer a deed at the time of closing. The buyer signs a land contract agreement and then occupies the property. The buyer then pays a predetermined monthly amount for a predetermined amount of time, both of which are specified in the land contract. At the end of the contract term the seller then signs a deed to the property over to the buyer. In its most simplistic aspect this basically amounts to a rent-to-own situation for the buyer. As with anything, there are pros and cons to this method of selling a piece of property. Unfortunately for the buyer, most of the upside lies wi
