Selling mortgage notes

Selling a land contract or contract for deed

Updated 2026-10-19

If you sold property on a land contract (also called a contract for deed or installment land contract), you can often sell your right to the remaining payments. Because you usually still hold legal title, the sale involves assigning the contract and dealing with the deed, so the paperwork review matters even more than with a regular mortgage note.

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How a land contract differs from a mortgage note

With a mortgage note, the buyer gets the deed at closing and gives you a lien. With a land contract, you usually keep legal title until the buyer finishes paying, and the buyer holds what is often called equitable title. When the last payment is made, you deliver the deed.

That difference shapes how a sale works. A note buyer is buying your seller's position in the contract, so they will want to know exactly how title is held, whether a deed sits in escrow, and how the contract handles default.

What a buyer will want to see

The signed land contract, and whether it, or a memorandum of it, was recorded.
Who holds title today, and whether a deed is held in escrow.
Payment history and the current balance.
Property tax and insurance status.
Any liens or loans still on the property in your name. An underlying mortgage needs special attention.

State law matters a lot here

States treat land contracts very differently. Some require recording or specific disclosures, and some limit how a seller can take the property back after default. A few treat these contracts much like mortgages. Before selling, it's worth having a local real estate attorney confirm your contract is in good shape.

Typical steps

Pull together the contract, title information and payment records (checklist).
Request a review with the basics: state, balance, payment, status.
Compare offers, including what each buyer needs at closing (title work, an assignment of the contract, a deed to the buyer or to escrow).
Close through a title company or attorney, and notify the contract buyer where to pay.

Questions

Is a contract for deed the same as a land contract?

Generally, yes. Land contract, contract for deed, installment land contract and agreement for deed are names for similar arrangements. The details depend on your state and your contract.

Can I sell a land contract if I still have a mortgage on the property?

Sometimes, but an underlying loan complicates things and can lower the price or limit buyers. Mention it upfront.

Will the buyer on my contract be affected?

Their terms stay the same. They just start paying the new holder. They should get written notice of the change.

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