IMPORTANCE OF LAND CONTRACTS.

A land contract may be advantageous to both buyer and seller.
Benefits to buyers. 
There may be a buyer interested on our property for sale but because of their credit history or other reasons, cannot obtain approval for a needed mortgage. We can enter into a sale by land contract so that the buyer makes monthly payments directly to the us,the vendor.

Benefits to sellers. 
The seller does not receive the full purchase price up front, like the seller would if the buyer used a mortgage or paid all cash, but the seller may have more options for potential buyers.Also, the seller may be able to negotiate a higher purchase price on the property by offering a sale by land contract. The seller(Ndatani) may also require and receive a large cash down payment.

Buyer's New Ownership of the Land Contract Property
While the buyer is making payments to the seller, the buyer is considered to have an “equitable title” to the property. As an equitable title holder, the buyer has an interest in the land contract property and the seller is precluded from selling the property to a third party or subjecting the property to a lien or encumbrance that would interfere with the buyer’s interest in the property.
The “legal title” to the property thus remains with the seller until the buyer makes the final payment.When the final payment is made, and all conditions of the land contract are met, the deed to the property will be filed with the appropriate government office,such as the county register of titles,naming the buyer as the new owner of the property.

BUYER FAILURE TO PAY THE DEBT IN DUE TIME
If the buyer defaults on the land contract,or fails to make the monthly payments to the seller as required,the firm(seller) can file a court action called land contract forfeiture.Forfeiture will result in the buyer giving up 10% of the money paid to the seller for the property pursuant to the land contract and the equitable title of the buyer will be pulled off.Basically,if the buyer fails to pay, the seller will keep 10% of the money received, plus the seller keeps the real estate.

The seller takes a risk selling by land contract because the he does not receive the full purchase price at the time of sale,but a forfeiture right protects the seller from a buyer who fails to pay allowing the seller keep payments and usually large down payment made by the buyer while retaining the property to offer for sale to someone else.