A land contract — also called a contract for deed or agreement for deed — is a seller-financed sale where the buyer makes payments directly to the seller, but the seller keeps legal title until the contract is paid in full. If you’re receiving payments on a land contract and want cash now, Cassidy Investment Group can help. In most cases, we’ll ask the seller to convert the land contract into a note and mortgage (or deed of trust) before we purchase it, since we prefer not to be in the chain of title on the property — but the cash-out result for you is the same.
Key Takeaways
- A land contract lets a buyer make payments directly to the seller while the seller retains legal title until it’s paid off.
- It’s a common way to sell property to buyers who can’t easily qualify for a conventional bank loan.
- Because the seller holds title, selling a land contract is done a bit differently than a mortgage note assignment.
- You can sell the whole contract or a partial — a set number of payments — for cash now.
- We typically require the land contract to be converted into a note and mortgage or deed of trust before purchase, since we prefer not to be in the chain of title.
- We buy performing and non-performing land contracts (once converted) on residential, multi-family, and land property.
What Is a Land Contract?
In a land contract, the buyer takes possession and makes payments, but the seller keeps legal title to the property until the full purchase price is paid. This differs from a mortgage note, where the buyer typically receives title at closing and the lender holds a lien. Land contracts are common in states where they offer a simpler alternative to a traditional mortgage closing, and for buyers who may not qualify for bank financing.
Why Sell a Land Contract?
Just like a mortgage note, a land contract can be converted to a lump sum of cash. Sellers do this to access money now, stop managing monthly collections, taxes, and insurance tracking, or simply reduce their long-term risk in the deal. Selling doesn’t change your buyer’s terms — they continue paying under the same agreement, just to the new contract holder.
What Determines Your Land Contract’s Value?
Land contract pricing follows the same core principles as any seller-financed note:
A consistent, on-time track record supports a stronger offer.
The buyer’s down payment and remaining balance relative to the property’s value.
The interest rate, remaining term, and clarity of the agreement itself.
Condition, location, and marketability if the buyer were to default.
How to Sell Your Land Contract
Because the seller holds legal title in a land contract, we typically ask that the contract be converted into a note and mortgage (or deed of trust) as part of the sale, since we prefer not to be in the chain of title on the property. That conversion is a standard step we can help coordinate, and it doesn’t change what you receive at closing.
| Step | What Happens |
|---|---|
| 1. Free quote | Share the contract terms, property, and buyer payment history |
| 2. Written offer | Receive a clear, no-obligation offer to review |
| 3. Convert & verify | The contract is converted to a note and mortgage or deed of trust, and we verify title and payment history |
| 4. Closing | Sign the transfer paperwork and receive your funds |
Have a land contract? Find out what it’s worth.
Cassidy Investment Group purchases land contracts nationwide (once converted to a note and mortgage or deed of trust). Get a free, no-obligation quote, or sell all or part of your contract for a lump sum.
Not ready yet? Join Note Talks, our free monthly Q&A on Zoom — the last Thursday of every month at 12:00pm EST.Frequently Asked Questions
How is a land contract different from a mortgage note?
In a land contract, the seller keeps legal title to the property until the buyer pays it off. In a mortgage note, the buyer typically holds title from closing while the lender holds a lien. The underlying idea — the buyer pays the seller over time — is similar, but the legal structure differs.
Will I need to convert my land contract before selling it?
In most cases, yes. We typically ask sellers to convert the land contract into a note and mortgage or deed of trust before we complete the purchase, since we prefer not to be in the chain of title on the underlying property. We can help coordinate that conversion, and it doesn’t change the cash you receive at closing.
Can I sell a land contract that isn’t being paid on time?
Often, yes. We consider non-performing land contracts as well as performing ones (once converted to a note and mortgage or deed of trust), with pricing reflecting the added risk.
Do I need an attorney to sell my land contract?
We handle the transaction professionally, but because land contracts vary by state and involve legal title, it’s reasonable to have your own attorney review the paperwork if you’d like.
Can I sell only part of the payments?
Yes. A partial sale lets you sell a set number of upcoming payments for cash now, with the rest reverting to you afterward.
Sources
- Consumer Financial Protection Bureau. Land contract and contract-for-deed guidance. consumerfinance.gov
Disclaimer: Cassidy Investment Group, LLC provides this content for general educational purposes only. It is not financial, investment, tax, or legal advice, and it does not constitute an offer to buy or sell any security or investment. Mortgage note transactions involve risk, and offers depend on the specifics of each note. Statistics cited reflect the sources and dates noted and may change over time. Consult qualified legal, tax, and financial professionals before making decisions about buying, selling, or investing in mortgage notes.