Land Contract/Subject To
Is buying a property with a land contract the same as buying a property subject to? I looked up the definition of a land contract and it sounds to me like they are one and the same. If anyone could clear this up for me, I would certainly appreciate it!
no, on a land contract, you don't get the deed until you fulfill the terms in the contract.
Subject to......you get the deed from strat.
Land contract = Contract for deed (in some states they may call it that, but this definition is easier to remember due to it's name).
In other words...You fulfill the contract (monthly payments of $X, for $months) you get the deed.
Any more light on this subject, ya'll?
Yes, a land contract is similar to buying a car: you have equitable interest in the property, but legal interest remains with the original seller. Once the loan is paid off (usually 30 years) then legal title is transferred. This is done through a title company in many cases.
Subject to is another game entirely. You get the deed up front. The loan stays in the seller's name. You make payments on their note, and the loan remains on their credit until such time as you pay it off. If you take sub2, you have them sign certain documents in front of a notary, you record the deed, and you own the house. First person to record the deed wins, in race states. You have full legal title.