Posted by Bill Bronchick on March 06, 2000 at 20:41:41:
Your best and strongest legal position is to get the deed (use the land trust method described in my “due on sale” article). If he is not willing to do this, a recorded land contract is second best, with your payment to him mirroring his underlying loan terms. Definitely use a third party escrow company for servicing payments, or you may them directly to the lender.
FYI, my upcoming Vegas seminar goes trough this in detail - click on the banner above.