What is Contract for Deed?
Contract for deed is a legal document between the seller and buyer of the real property. In this contract the owner of the land preserves the right of ownership and allows the buyer to hold the possession of the land for an agreed purpose other than a legal ownership of the land. It can be developed for selling a property and receiving the price in installments. Until the completion of the installments buyer has not legal ownership. When all the payment is received from the buyer the owner transfers the legal title to the buyer.
How to Write Contract for Deed?
For making a property sale, contract for deed is very effective. It is written according to the state laws that vary state to state. It contains the terms for the sale of the real estate. These terms could be according to the will and requirement of the seller and law.
Following are the steps to write a contract for deed.
- Write the heading “Contract for Deed” at the top of the paper. And then write all the terms and situations in separate numbered paragraphs.
- Enter a new heading of sale of property in the next section of the document. Include fundamental stipulations about the property, its location, area, price and the parties that are going through the sale agreement.
- In the next session state the purchase terms. Here include the terms about the loan to the buyer, interest rate, the time duration for completion of the sale deed.
- Include the terms for possession of the property. Here define the conditions under which buyer can take the possession. Usually, the buyer is bound to return the property in good condition if the contract is terminated without completion of the sale.
- Other terms and conditions can be added in the contract as per the will of the seller or buyer.
- The agreement must be signed by all entities with the legal witness at the bottom of the agreement.
Create your own Contract For Deed Form by using the following template,
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