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You are not able to report the payments to the credit bureaus.But, more often than not, individuals who act as creditors in a land contract arrangement do not report payment history because they have to pay a fee to register with the reporting agencies and report payments.

Disadvantage #1: The title does not automatically pass to the purchaser in a land contract. Disadvantage #2: The seller could be held legally responsible for inspection issues with local or state authorities. Disadvantage #3: Forfeiture of a land contract by the purchaser is a fairly common occurrence.

A big disadvantage for sellers who participate in a land contract is that they have to wait for the buyer to pay off the home over a certain number of years.A balloon payment might be included so that a buyer has to pay off the balance within a shorter amount of time.

On the flip side, a land contract is the sale of a property, where the seller finances the deal.In addition, there is no obligation to buy the property in a lease-to-own arrangement. As such, depending on the specifics of the agreement, the lessor can walk away if they are unsatisfied with the property.

Common law remedies - damages A party who has breached a contract for the sale of land is liable to pay at least nominal damages, even if no loss has been caused.

Setting up a basic land contract is fairly simple if both the buyer and seller agree on the terms of the sale and financing. Agree upon a sale price. Before you begin structuring the land contract, meet with the buyer and agree upon a sale price if you have not done so.

At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required.

A land contract is a type of real estate financing in which the buyer makes payments directly to the seller instead of a lender. Once the contract is fully paid off, the title to the property passes to the buyer. This is in contrast to a traditional mortgage where the buyer would receive the title at closing.

The main advantage of a land contract is that it's fairly easy to qualify for. As long as the seller is willing to go that route, there's little need for extensive credit checks.A land contract is often viewed as a way to "pay down the purchase price" before obtaining a regular mortgage to buy the property outright.

If the buyer has not made all the payments and defaults on the land contract, the seller may be able to file a "land contract forfeiture" in court. Depending on the ruling, the seller may be able to keep all the money already paid to him as well as retaining the rights to the property.