Hey Brook. Thanks for your questions!! in A Land contract the BUYER pays the monthly Pymnt. This Entire payment all goes to the Total sales price except the interest part depending on if the seller charges an interest fee. Now how this is different from a lease option where you need TWO contracts -#1 a lease and #2 an option to purchase contract AND only a portion of the payment goes to the sale price. So the land contract is only ONE contract. Also in the land contract strategy the BUYER pays all taxes and insurance over and above the monthly payment.
If the buyer defaults on the a-monthly payment b- taxes c- insurance then the seller can treat as if it’s a rental and evict. IF………. they have not pd 65% of the contract. At least in ny this is the advice I have gotten consistently from multiple attorneys in ny. ……IF they have pd 65% of the total sales price THEN you will have to foreclose At least in ny. Please check with YOUR attorney in your state. If any part of this DOES NOT make sense to you or if you don’t understand a part please ask me to clarify. Want to make sure I explain things clear