Finance
What is 'land contract' (installment land contract or articles of agreement) and how is it used in Pennsylvania?
AA standard purchase agreement for farmland in Pennsylvania
BA seller-financing arrangement where the seller retains legal title until the purchase price is paid in full, often used when buyers cannot obtain conventional financing✓ Correct
CA contract required for all vacant land purchases in Pennsylvania
DA PHFA land banking program for affordable housing development
Explanation
An installment land contract (articles of agreement for deed) is seller-financing where the buyer makes payments to the seller but the seller retains legal title until the purchase price is paid in full. Used in Pennsylvania when buyers cannot obtain conventional financing, it carries significant risks for buyers: default can result in forfeiture of all payments and improvements without foreclosure protections. Pennsylvania courts have provided some buyer protections, but installment contracts should be approached cautiously. They are most common for rural/vacant land or commercial investments.
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