whats a contract for deed and how does it suppose to work?
One thought on “whats a contract for deed and how does it suppose to work?”
A contract for deed is way to buy property for those who cannot qualify
for a regular mortgage. The buyer signs a contract for purchase of the
property, agreeing to pay so much per month for the required number of months, but unlike the buyer with a regular mortgage, does not acquire title to the
property until the very last payment due under the contract is finally made.
And, in the meantime, if the seller happens to die before the contract can be
paid off, the seller’s heirs receive the property since title would’ve remained
with the seller under these circumstances and the buyer would likely
get little more than a notice to vacate.
Contract for deed obviously is not a very desirable way to purchase
property.
Michael E. Hendrickson
Attorney & Counsellor at Law
211 North Union Street Suite 100
Alexandria, 22314
A contract for deed is way to buy property for those who cannot qualify
for a regular mortgage. The buyer signs a contract for purchase of the
property, agreeing to pay so much per month for the required number of months, but unlike the buyer with a regular mortgage, does not acquire title to the
property until the very last payment due under the contract is finally made.
And, in the meantime, if the seller happens to die before the contract can be
paid off, the seller’s heirs receive the property since title would’ve remained
with the seller under these circumstances and the buyer would likely
get little more than a notice to vacate.
Contract for deed obviously is not a very desirable way to purchase
property.
Michael E. Hendrickson
Attorney & Counsellor at Law
211 North Union Street Suite 100
Alexandria, 22314