Posted by Judy Miller - American Note on February 11, 2000 at 09:59:39:
A contract for purchase and sale is the instrument that you sign with a buyer that sets the terms of the transaction. It does not convey title in and of itself.
However, a land contract, agreement for deed, contract for deed, depending on what it is called in your respective state, which can be, if constructed correctly, can be a “recordable” document, which, when all payment are made thereunder, gives the borrower the right to obtain title. In other words, you are agreeing, as the seller, to convey title upon the completion of the terms of the contract.
While with a Contract of Purchase and sale, you are just setting the terms under which a later title conveyance instrument will be executed which sets the terms under which the title conveyance shall occur.
Hope this helps.
Judy Miller, President