It is possible for the interest rate to change over time, but the average interest rate has to be 11% or less. In general, the buyer is in charge of making all repairs and paying property taxes in most land contracts. In considering a land contract transaction, you will need to determine the following terms at a minimum: (i) purchase price; (ii) down payment, if any; (iii) interest rate; (iv) first payment (often upon execution of the land contract); (v) frequency of installments (typically monthly); (vi) amount of installment and amortization; (vii) maturity date; (viii) restrictions on prepayment; (ix) if either party can mortgage, sell or assign its interest in the land contract; (x) which party is According to Section 302.002, the state legal maximum interest rate is six percent per annum. Under Section 304.002, interest rate on money judgment is 18 percent per annum. If the judgment is based on a contract fixing a different rate of interest, the interest is equal to the lesser rate specified in the transaction.