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A land contract is a financial agreement between a vendor and a vendee. Generally, the title is held by the seller until final payment is made. The land functions as the security device. Unless agreed otherwise, the seller is responsible for paying taxes and insurance because the seller retains legal title to the property.
A land contract is also known as a contract for deed, an agreement to purchase and sell, or a land installment contract.
In a land contract, the seller is the vendor, and the buyer is the vendee. The buyer has an equitable interest, which indicates a beneficial interest in the property and gives the holder the right to acquire legal title in the future.