Refinancing a land contract or an agreement for deed, is fairly simple. However, there needs to be specific items in place. A land contract operates just like an ordinary bank loan, except payments are made to a private individual or a group of people instead of a bank. By refinancing, the land contract is replaced by a bank loan and the seller of the property gets paid what he or she is owed on the agreement for deed. There several things that must be done going into land contracts, in order for most banks to pay them off with new loans.