Purchasing real estate property can prove to be a complex undertaking, particularly when the buyer may not have the financial means to purchase the property outright or his/her credit history is not up to par. However, there are alternative ways for a buyer to purchase property without necessarily requiring financing from the banks. Buying a property contract can be done through the use of creative financing.
One of these methods is known as a land contract, where the buyer and a private seller draft a contract stating that the seller of the home will hold on to the property deed until the buyer makes all agreed upon payments on the property contract. Essentially, this would mean that the seller would be financing the home. Buying a land or property contract will probably require the need for a real estate agent, particularly for the purpose of drafting the property contract itself. Upon agreeing on the terms of the contract, it is important that both parties file the land contract with the local Registrar of Deeds office in order to make the contract a public record and reinforce its legal application.
