Selling a lot with a contract for deed
We've had a for sale sign out front of our spare lot for a few months now. A potential buyer is interested, but asked if we'd consider a land contract with full payment in a year. The reason is that he'll have a chunk of a cash in a year, but wants to lock up the land now.
I have some reservations about doing this. Firstly, not sure if my current mortgage holder would permit it. Secondly, if he defaulted, couldn't that make things messy sorting things out and freeing up the land for resale?
What else do I need to consider in all this? Other risks? Other options for achieving the desired outcome? I proposed a purchase agreement with significant earnest money and a long closing date.
Any tips from those who might have walked this path before?