What is a contract for deed?

A contract for deed - also known as a land contract or an installment sale agreement - is an agreement between two parties in which the seller of a real estate property agrees to sell the property to the buyer for a fixed price and on certain terms, and the buyer agrees to make payments over a period of time in order to purchase the property. Typically, the seller retains legal title to the property until all of the payments are made by the buyer and the final deed is issued. This type of contract is often used as an alternative to traditional financing in cases where the buyer’s credit isn’t good enough to qualify for a loan or if the seller needs a lump sum of money right away. In California, contracts for deed are governed by the Civil Code, which lists the provisions that must be included in each contract, such as the amount of the purchase price, the terms of payment, and the conditions under which the seller may terminate the agreement. The law also requires that contracts for deed include the buyer’s right to terminate the agreement under certain circumstances, including nonpayment of installments or a breach of the agreement by either party. It is important that buyers and sellers understand all of the terms and conditions included in a contract for deed before signing, as violations of the contract can result in serious legal consequences. If you are considering entering into a contract for deed, it is recommended that you consult an experienced real estate attorney who is familiar with California real estate law.

Related FAQs

What are the laws governing the leasing of real estate?
What is the role of a real estate appraiser?
What are the legal requirements for purchasing real estate?
How do I transfer ownership of real estate?
What are the duties of a closing agent?
What is a home warranty?
What is a ground lease?
What is an adverse possession claim?
What types of taxes will I have to pay when I buy or sell real estate?
What is the role of a real estate broker in a real estate transaction?

What is a contract for deed?

Related FAQs

Related Blog Posts