What does "forfeiture" typically refer to within a land contract?

In the context of a land contract, "forfeiture" typically refers to a vendor's action when a buyer fails to meet specific terms or conditions set forth in the contract, particularly regarding payment obligations. When a buyer defaults on these terms, the vendor may have the right to reclaim the property, essentially terminating the buyer's interest in it due to the breach of contract.

This action serves as a remedy for the vendor, allowing them to take back the property without the need for lengthy legal proceedings, provided the contract explicitly outlines such terms. It is crucial to note that the forfeiture rights might kick in after certain conditions, such as missed payments or other breaches, indicating that the vendor has a pathway to mitigate losses from the default.

The other options present different concepts that do not align with the typical application of forfeiture in land contracts. For instance, adverse possession relates to gaining rights to land through continuous possession, whereas automatic termination of property rights usually involves more legal complexities than mere contract breaches. The transfer of lease rights without compensation pertains to lease agreements rather than land contracts, which focus on ownership rather than rental agreements.