What's the difference in L/O or Land Contract? - Posted by Tim OH

Posted by Tim OH on December 14, 2000 at 20:27:36:

Thanks Ed, that certainly answers my question!

Tim OH

What’s the difference in L/O or Land Contract? - Posted by Tim OH

Posted by Tim OH on December 14, 2000 at 13:23:01:

Are these two methods for buying a property different in nature or only in the specific terms added to or deleted from each contract?

Re: What’s the difference in L/O or Land Contract? - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on December 14, 2000 at 19:03:22:

Tim,

About as much difference as pregnancy and just thinking abiut it.

The L/O (lease/option) is actually two contracts, a lease and an option. The lease does not convey ownership, but only allows use. The option which may be contained in the lease, or which may be a seperate agreement gives; the righ to purchase but does not require that the purchase take place. It is an option this means that it may or may not take place.

The land contract (L/C), is an agreement to purchase. This means that the buyer bought, and does not have the “option” to back out because the sale has already taken place.