A land purchase contract works in favor of both the parties. The vendor enjoys the ownership of the land until the final payment is made, thus securing him from defaults. In case of default, the vendor is not liable to pay the installments or the down payment which he has already received on the land. The vendor can prepare a contract as per his wish, as there are no regulations governing the land purchase contract. He can even ask for a higher price than the market rate, if the buyer is ready to pay. The vendor also gets paid in convenient installments, as opposed to a lump-sum, so he enjoys a continuous flow of passive income along with the ownership of the land, for that period.
For the buyer, he can avoid running to the banks, and the whole paperwork process. Loans are hard to come by and credit-rating scales are becoming even more strict, this option for buying land is one of the best available to him. He can pay small amounts over a period of time, thus not burning a big hole in his pocket. He is allowed to enjoy the use of land for almost all purposes, as if it were his own. He only cannot mortgage that land, as it does not belong to him yet. Lastly, unlike renting, the buyer, at the end of the contract period, gets ownership of the property, which is a valuable asset.
Buying land today is a common aspiration. So don't be disheartened simply because you are unable to procure a loan. The land purchase contract is a very good and convenient alternative method to buy a land. And it's very simple, too!
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