Contract for deeds can be an excellent method for someone to purchase real estate that may not otherwise be able to purchase real estate by financing through a bank. However, contract for deed sales are much less regulated and buyers are more likely to encounter disreputable sellers.
A contract for deed should, at a minimum, clearly identify the property to be purchased (by common address and legal description), be in a format that can be recorded in the County recorder’s office, describe the purchase price and how it is to be paid, who is responsible for taxes and insurance, the seller should disclose whether the property is subject to a mortgage and if so provide a right to the buyer to receive regular statements showing the balance of the mortgage, remedies for both the buyer and seller in event of default, describe the buyer’s right to sell the property, redemption rights (if you are the buyer), and a right to request attorney’s fees in the event of a breach, among other things.
If you are considering buying or selling property on a contract for deed, consider reviewing the contract with an attorney.
© 2018 Fremstad Law
TERMS OF USE AND DISCLAIMER: Thank you for visiting the Fremstad Law Web site. Please note that the materials on our site have been prepared by us for general informational purposes and are not legal advice. We will not accept requests for legal advice over the Internet. You should not rely on any information contained herein in evaluating any specific legal issues you may have. Do not send us information about your legal issues until you speak to one of our lawyers and get authorization to do so. The firm does not and will not consider or treat any unsolicited e-mails or information sent to us, an attorney, or an employee of the firm by persons seeking legal advice or other non-clients to be confidential and the firm reserves the unconditional right to disclose or use any such unsolicited e-mails or information for any purpose. Your use of our Web site and/or sending e-mail to us or one of our lawyers does not create a lawyer-client relationship. A lawyer-client relationship is not created except by a written acknowledgment of such an engagement signed by a member of the firm. For your convenience, our Web site may contains links to other third-party sites. We do not endorse or verify the accuracy of information on such sites and are not responsible for the contents of any of these third-party resources. The inclusion of such link on this site does not imply the endorsement, recommendation or approval of that site by Fremstad Law.
