Traditionally, real estate that is transferred by sale begins several months before the closing date. Negotiations begin, a written purchase agreement is drafted (containing: a property description, the names of seller and buyer, the price, and other important terms), money is transferred into escrow, and inspections (environmental and structural) are ordered.

Although, real estate sales through Land Contracts should be similar to traditional sales, they often take place without legal counsel whereby neither party is protected and without much organization. An agreement is drafted to transfer title if the buyer makes x monthly payments in y amount with z interest until the sale price paid (a final balloon payment is not unusual).

Under both sale types, traditional and land contract, marketable title is implied in every transfer at closing. Marketable title does not mean perfect, rather it means free from unreasonable risk of litigation. Unmarketable title may mean: a defect in the chain of title such as a variation in the legal description or defect in the deed. Encumbrances such as mortgages and liens may be satisfied at closing. Unwaived easements, restrictive covenants, and significant encroachments may render title unmarketable.

Traditional Land Sale: Title must be marketable on closing, and unless an agreement states otherwise, time is not of the essence.

Land Contracts: Title must be marketable when delivery of title occurs (final payment).

If a buyer determines that title is defective (unmarketable), the buyer must notify and allow the seller to cure the defects. Generally, if the seller does not cure unmarketable title the buyer can sue for damages, unless the contract says otherwise.