Installment Sales Contract

Installment Sales Contract (“Equitable Mortgage”)

When a buyer finances the purchase price for property with the seller directly, instead of using a bank, by entering into an installment sales contract that allows the buyer to take possession of the property while paying off the total purchase price.  The seller agrees to execute a deed only after the purchase price is fully paid.

  • Example : Anthony wants to purchase a property from Hayley.  The purchase price is $300,000. Anthony agrees to pay Hayley  $1,250 every month for the next 20 years.  Hayley agrees that once the full $300,000 purchase price is paid in full, she will execute a deed giving Anthony title to the property.
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