In Illinois, a land contract (installment contract) requires:
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Title transfer at signing
Option A is incorrect because in an Illinois land contract, title does not transfer at signing. Instead, title remains with the seller until the buyer completes all installment payments. This is a fundamental characteristic of land contracts, where the seller acts as a financing source while the buyer has equitable title but not legal title until full payment is made.
Recording to be valid
Recording is recommended for a land contract to provide public notice and protect against third-party claims, but it's not required for the contract to be valid between the buyer and seller in Illinois.
Written agreement describing terms
Bank approval
Bank approval is not required for a land contract, as this is a seller-financed arrangement where traditional mortgage lenders are not involved.
Why is this correct?
In Illinois, land contracts must be in writing describing the terms of the sale. This requirement stems from the Statute of Frauds, which mandates written agreements for real estate transactions to be enforceable. While recording is advisable, it's not required for validity between the parties.
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