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 Alaska, a land contract is a form of seller financing for the purchase of land, which may or may not include improvements like buildings. The buyer agrees to make payments to the seller according to the terms set out in the contract, which typically includes monthly installments with interest and often a balloon payment at the end. Upon completion of the payment terms, the seller is obligated to transfer the title to the buyer. While land contracts can be financed by banks or other lending institutions, these loans may carry higher interest rates and shorter terms compared to traditional mortgages, reflecting the higher risk associated with undeveloped land. If a balloon payment is due to a bank or lender, the borrower might secure a takeout loan, potentially with better terms, especially if the land has been developed and the loan is secured by the added value of the development. It's important to note that the specific terms and protections for both parties in a land contract can be subject to state statutes, and an attorney can provide guidance tailored to the individual circumstances of the transaction.