A land contract—also known as a contract for deed, an installment land contract, or a land sales contract—is an agreement between a buyer and seller for the sale and purchase of a specific piece of land. Land contracts may consist of undeveloped land or include both land and building structures located on the land.

Land contracts are often completed with seller financing in which the buyer pays the seller in monthly payments or installments that include an agreed interest rate and a lump sum balloon payment after a certain number of years. When the buyer has made the monthly payments for the required number of years, plus any balloon payment, the seller is required to transfer the title (evidence of ownership) to the buyer, as provided by the land contract.

Land contracts may also be financed by banks or other lenders—often with traditional deed of trust or mortgage agreements. Bank and other lender loans for undeveloped land will often be financed at a higher interest rate and for a shorter term (with a balloon payment) than a traditional home mortgage, for example.

When the balloon payment to the bank or lender comes due a builder or developer may get a takeout loan to replace the existing loan—with the expectation of securing better terms (interest rate, etc.) because the land will be developed (at least in part) and the loan will be better secured by the value of the development (building structures, etc.) on the land.

In Florida, a land contract, also known as a contract for deed, is a form of seller financing used for the purchase of real property. This type of agreement allows the buyer to make payments directly to the seller in installments, often including interest and potentially a balloon payment at the end of a specified term. Upon completion of the agreed payments, the seller is obligated to transfer the title of the property to the buyer. While land contracts can be beneficial for buyers who may not qualify for traditional financing, they also carry risks, as the seller retains legal title until the contract is fully executed, which can lead to complications if the seller faces financial difficulties or disputes arise. Additionally, financing for undeveloped land through banks or other lenders typically comes with higher interest rates and shorter terms compared to traditional mortgages. Developers may use a takeout loan to pay off the initial higher-interest loan once development has increased the land's value, thereby securing more favorable loan terms. It's important for both buyers and sellers to understand the terms and legal implications of land contracts and to consider seeking advice from an attorney to ensure their interests are protected.