If a buyer does not have sufficient credit to purchase real estate, an alternative method of doing so is a Land Contract. Such a contract is a very flexible agreement between the buyer and seller to allow a buyer to have purchasing rights to the property. The deed does not transfer until the contract is paid off. The buyer and seller set the terms of the contract, and a bank is not involved. Negotiate terms of the contract to include down payment, interest rate, length of amortization, who pays taxes and insurance, and who pays for cost of title work. Closing costs are usually reduced compared to a normal real estate matter. The contract can even be set up for a balloon payment in a few years to require the buyer to refinance the contract and pay off the entire loan to the seller. To learn more about land contracts either from a buyer or a seller’s perspective, please contact the Pruitt Law Offices S.C. at 262-633-8301, through our website at pruittlawoffices.com, or visit us at 731 Main Street in Racine. We are your partners for professional service.