Final answer:
Unlike an ordinary real estate purchase contract, the parties of a land installment contract form a longer relationship. This is due to the way payments are made over time before full ownership is transferred, rather than deferring possession or requiring residency in the same state.
Step-by-step explanation:
The student's question pertains to the differences between an ordinary real estate purchase contract and a land installment contract. Unlike an ordinary real estate purchase contract, the parties of a land installment contract form a longer relationship. This is because a land installment contract often involves the buyer making payments over time to the seller before obtaining full ownership of the property. While all real estate contracts require parties to have the requisite capacity to enter into a legal agreement and property ownership involves the right to enter into contracts, the peculiar characteristic of a land installment contract lies in the duration and nature of the transaction rather than the capacity or residence of the parties.
Deferred possession until closing is not a distinctive feature of land installment contracts; buyers typically gain possession before the full purchase price is paid off. Also, there is no requirement for both parties to reside in the same state. Legal systems provide recourse in the event of contractual disputes to enforce property rights, which is an essential component for ensuring the use of property for its highest and best use.