When it comes to purchasing property, there are several different ways to go about it. One option that has become increasingly popular in recent years is the land contract. Also known as a contract for deed or installment sale agreement, a land contract is a type of real estate purchase in which the seller acts as the lender and the buyer makes payments directly to them. But what is the buyer in a land contract called?

In a land contract, the buyer is often referred to as the “vendee.” This term comes from the French word “vendre,” which means “to sell.” The seller in a land contract is typically called the “vendor,” which is also derived from the same French root word.

It’s important to note that the terms “vendee” and “vendor” are not exclusive to land contracts. They are also used in other types of sales agreements, such as those for personal property or businesses. However, in the context of a land contract, these terms are particularly important because they establish a unique relationship between the buyer and seller.

One of the key differences between a land contract and a traditional mortgage is that the buyer does not immediately become the owner of the property. Instead, the buyer is essentially renting the property from the seller until they have made all of the required payments. Once all payments have been made, the seller transfers ownership of the property to the buyer.

Because the buyer is essentially renting the property during the term of the land contract, they are also responsible for maintaining it and paying property taxes. However, because they are making payments directly to the seller, rather than a bank or other financial institution, they may be able to secure financing that they would not otherwise be able to obtain.

Overall, a land contract can be a great option for buyers who are unable to secure traditional financing, or for sellers who are willing to act as the lender. And now that you know that the buyer in a land contract is called the “vendee,” you’ll be well-equipped to navigate this unique form of real estate purchase.