Can a Buyer Pay Off a Land Contract Early?

A well-drafted Land Contract explicitly outlines the payment obligations within the document. (If the Land Contract you are using does not, next time get Land Contract documents from Standard Legal!)

An early payoff is certainly ‘legal’. By law, a Buyer has the right to pay off a loan balance to satisfy a contract.

But it is also legal for an early payoff to be prevented by agreement. If the Buyer and Seller specify within the Land Contract that pre-payment is not an option available to the purchaser, it is a valid term. But this requirement must be stated clearly within the Land Contract.

If no mention of an early buyout is referenced in a Land Contract document, a legal dispute could result should the Buyer insist on an early payoff. And a contract that does not specifically prevent an early pay-off would likely lose should the issue be pressed in court.

If you are a Buyer or Seller who uses a poorly drafted Land Contract and now faces this early payoff question, you may wish to speak to an attorney. Only an attorney can provide legal advice specific to a situation and contract. To find a local attorney for FREE, visit Standard Legal’s Attorney Finder page.