Title Insurance Tuesday- Learn Here
Summit Title LDS
Summit Title LDS
Seems Like A Simple Question...
"Just what does a Land Contract convey to the buyer?"
A land contract, once executed and delivered to the purchaser, is a present sale that conveys equitable title to the buyer, subject only to the vendor's right to collect the purchase price in installment payments. The seller does not retain any ownership in the property that has been sold; he has only a contractual security interest in the land for the unpaid balance of the land contract. Once a property is sold under a land contract, neither the seller nor the purchaser can mortgage their interest separately.
An Owner's Title Policy can be issued at the time of the execution of the Land Contract. However, issuing a Lender's Policy does not "fit" the interest of the Seller.
A land contract, once executed and delivered to the purchaser, is a present sale that conveys equitable title to the buyer, subject only to the vendor's right to collect the purchase price in installment payments. The seller does not retain any ownership in the property that has been sold; he has only a contractual security interest in the land for the unpaid balance of the land contract. Once a property is sold under a land contract, neither the seller nor the purchaser can mortgage their interest separately.
An Owner's Title Policy can be issued at the time of the execution of the Land Contract. However, issuing a Lender's Policy does not "fit" the interest of the Seller.
Stay tuned for another Title Tuesday- Learn More...
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