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Yes. With the right circumstances and a fair document, a land contract (sometimes called a contract for deed) can be a great way to transfer real estate when traditional financing is not available. More often, we hear about terrible results from land contracts.

The seller is responsible for the maintenance of the property, any repairs and for paying property taxes and insurance, the same as any landlord. The seller also gets to deduct those costs, as well as any mortgage interest, on his or her tax returns.

A big disadvantage for sellers who participate in a land contract is that they have to wait for the buyer to pay off the home over a certain number of years.A balloon payment might be included so that a buyer has to pay off the balance within a shorter amount of time.

Here are some of the risks: The seller retains the right to the property until you pay in full, no matter how much money you put into it. If you miss any payments, the seller can quickly cancel the contract and keep every cent you've paid (state laws vary on how this goes down)

Registering a Land ContractA land contract is not legally required to be recorded in Michigan. However, both the buyer and the seller may wish to record the contract to protect their interests in the property.The land contract should be signed in front of a notary public or local judge.

It is possible for the interest rate to change over time, but the average interest rate has to be 11% or less. In general, the buyer is in charge of making all repairs and paying property taxes in most land contracts. Most contracts also say the buyer must get homeowners insurance.

STANDARD CONTRACT OF SALEThe name and address of the Vendor. Address of the property and in some States the physical dimensions of the land. Title Reference and Plan Number. A list of any Chattels and Fittings included in the sale.