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 South Carolina, a land contract, also known as a contract for deed, is a form of seller financing where the buyer makes payments to the seller for the purchase of land over time. Upon completion of the agreed payments, including any balloon payment, the seller is obligated to transfer the title to the buyer. These contracts may involve undeveloped land or land with existing structures. While land contracts can be an alternative to traditional financing, they are less common than mortgage or deed of trust agreements, which are typically used when a bank or another lender is involved. Financing for undeveloped land through banks may carry higher interest rates and shorter terms, potentially culminating in a balloon payment. Developers may use takeout loans to refinance these initial loans upon development of the land, aiming for better loan terms due to the increased value from the development. It's important for both buyers and sellers to understand the terms and legal implications of a land contract, and they may benefit from consulting with an attorney to ensure their rights and interests are protected under South Carolina law.