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For details, see the Nolo articles under What Sellers Must Disclose About a House’s Condition in the Selling a House section of this site.

The land contract is its own legal agreement or contract, with all the terms and conditions agreed to between the buyer and seller.

Since the deed to the property is not filed until the seller receives payment in full of the purchase price indicated in the land contract, this memorandum is filed with the city and county to record the buyer’s interest in the property.

The memorandum should list the address and legal description of the property as well as the names of the buyer and seller, and the date of the land contract.

The seller may be required by law to provide certain disclosures such as of any known defects of the property, including the existence of any lead-based paint.

Required real estate disclosures vary by state, and a real estate professional or attorney may be able to assist sellers with these forms.

At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required.

This memorandum serves to put the public on notice of the buyer’s interest in the real property without the parties having to publicly disclose and record the full land contract and all of its terms, including price.

For information on land contracts in general, see the Nolo article.

And for a variety of useful articles on real estate closings, see Escrow and Closing in Nolo’s Real Estate section.

The purchase agreement should indicate that the offer is for a land contract, and should state the purchase price, initial cash down payment, length of the payment term, and any other terms of sale.

A seller who accepts the terms of the buyer’s purchase offer should sign the offer making it an official purchase agreement.

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As with other real estate transactions, land contracts require a “closing” to prepare, sign, and file all necessary legal documents.

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