OfflineSo i know its in here some where but i couln't find it!! What is the difference between a land contract and a lease option? I always get confused on these 2 and i need to know for sure what the difference is!!
Thanks,
Shaun
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I know it's in here!!
Posted on: Fri, 10/03/2008 - 11:47
land contract is when seller finances and you make payments to them (title is transferred to your name, they hold mortgage).
lease option is when you have the OPTION to buy within/after a specified amount of time. (seller holds title until then)
in a nutshell.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
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Thanks you always come through like always!!!
Shaun
I have to correct myself!!!
In a land contract, or contract for deed (CD), the SELLER holds the title until all payments have been made. If you could get the seller to sign it over earlier, that would be great! But I suppose then it would be considered seller-financing, not land contract. I apologize for any confusion.
Here's a good article.
http://www.wisegeek.com/what-is-a-land-contract.htm
Rina
P.S. Anyone reading this, if I ever say something incorrect, please don't be afraid to point it out.!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Rina is correct. So basically...to put it short and sweet...with an option you are renting until you exercise the option to purchase the property. With a contract for deed you actually own the property. Title will only pass when you pay the purchase price in full to the seller. I hope this clarifies it.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
so then if im hearing this right the difference between contract for deed and seller financing is the title? Seller financing you transfer title and contract you hold title until payment is made in full??
Thanks again!!
on a contract for deed can you rent it out to someone else even though the title is still in the sellers name?
dee
Just wanted to clear something up, so everyone knows that when constructing a "Contract For Deed" It does NOT mean you Absolutley have to pay the property off in order to get the Deed Transfered into your name. If you and the Seller wanted and Agreed, you could do a "Contract For Deed" with the stipulation that AFTER 24 Timley Monthly Payments, Then you could Transfer the Deed into your name, This is Good to know, SULLY
YOUR HERO, SULLY