LAND INDIANA INCONTRACTS
STUDY SHEET
Summary
The land contract serves as an alternative to traditional financing for some buyers. The land contract is
also known as a land installment contract or contract for deed.
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SELLERS IN LAND CONTRACTS:
• Ensure the contract is legal and follows Indiana law.
• Hire an attorney to review the contract.
BUYERS IN LAND CONTRACTS:
• Confirm that traditional, conventional financing isn’t a
better option.
• Hire an attorney to review the contract.
SELLER ADVANTAGES AND DISADVANTAGES
Top Takeaways
Advantages
Large pool of buyers
Opportunity for steady
income
Ability to cancel and
reclaim property if buyer
defaults
Disadvantages
“Due-on-sale” mortgage
clause may be activated
Possibility of buyer default
and need to evict
Disadvantages
Fewer consumer
protections
Balloon payment due at
end of term
Title holders can sell their
interest, leaving the buyer
with a new landowner
Advantages
Low or no down payment
and flexible financing
Opportunity to improve
credit score
Write-off of interest paid
BUYER ADVANTAGES AND DISADVANTAGES
INDIANA LAW ON LAND CONTRACT
• If less than 20% of the sales price has been
paid, buyer default may lead to eviction
proceedings.
• If 20% or more of the sales price has been
paid, buyer default may lead to foreclosure
proceedings
• The buyer is typically entitled to possession of
the property as soon as he signs the contract,
as soon as he tenders a down payment, or as
soon as he pays the first periodic installment.
• Legal title to the property may remain with the
seller until the buyer fulfills his duties under the
contract, and sellers usually insist on this.
• The Secure and Fair Enforcement for Mortgage
Licensing Act of 2008 (the SAFE Act) requires
parties that extend financing for the purchase
of real estate, including sellers under land
contracts, to be licensed.
