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 Utah, a land contract is a form of seller financing for the purchase of real estate, where the buyer makes payments to the seller according to the terms agreed upon in the contract. This type of agreement allows the buyer to make installment payments, often including interest, and may include a balloon payment at the end of a specified term. Upon completion of the payments, the seller is obligated to transfer the title to the buyer. While land contracts can be beneficial for buyers who may not qualify for traditional financing, they also carry certain risks, such as the potential for forfeiture if the buyer defaults on payments. It's important to note that land contracts are subject to Utah's real estate laws and regulations, and both parties should ensure that the contract is legally binding and properly recorded to protect their interests. Additionally, when financing through a bank or other lender, terms such as interest rates and loan duration may differ from traditional mortgages, especially for undeveloped land. Builders or developers may seek a takeout loan to secure better financing terms once the land is developed. As with any real estate transaction, it is advisable for parties involved in a land contract in Utah to consult with an attorney to navigate the legal complexities and ensure compliance with state laws.