What is a deed agreement in real estate

Other Names: Land Contract Land Sale Contract Contract to Sell Real Estate Real Estate Purchase Agreement Real Property Sales Agreement Real Property Purchase Agreement Installment Land Contract

What is a Contract for Deed?

A Contract for Deed is an agreement between a buyer and seller in which the seller acts as the financier. If you are looking to buy or sell a property without using traditional financing, a Contract for Deed may work well for you.

Under a Contract for Deed, the buyer makes regular payments to the seller until the amount owed is paid in full or the buyer finds another means to pay off the balance. The seller retains legal title to the property until the balance is paid; the buyer gets legal title to the property once the final payment is made. If the buyer defaults on the payments, the seller can repossess the property. In some states, a seller who repossesses a property must reimburse the buyer for the fair value of improvements to the house, as well as a reasonable amount for rent.

Our Contract for Deed contracts are suitable for most types of property including residential, commercial property, land and farmland. These documents can be made suitable for all 50 states.

When to use a Contract for Deed:

• A Purchase Agreement has been signed by the Buyer and Seller of real property who are ready to proceed with finalizing the transaction.
• You are selling real property to a Buyer who is unable to obtain financing through a bank or other financial institution and you have decided to act as the financer.
• You are buying real property from a Seller who is willing to allow you to reside on the property while you make payments toward to total purchase price.
• You are a Buyer who has no established credit or bad credit and wish to purchase a home by making payments on the sales price to the Seller without financing with a bank or other financial institution.
• You want to determine the amount of a monthly payment on a loan contract.