What is a contract for deed?

A contract for deed, also known as a land contract or an installment sale agreement, is a form of real estate transaction commonly used in the state of Virginia. This type of agreement is used when the seller of real estate does not want to immediately receive payment in full, and instead allows the buyer to make payments over a period of time. Under a contract for deed, the buyer makes an initial payment, usually known as the down payment, to the seller and then makes additional payments until the property is paid off. Once all of the payments have been made, title is transferred from the seller to the buyer. This type of agreement is often used when the buyer is unable to obtain traditional financing from a bank or other lender. When a contract for deed is used, there are usually certain obligations and rights for both the buyer and the seller. For example, the buyer is expected to make all of the payments on time, while the seller is obligated to transfer the title of the property to the buyer once the purchase price has been paid in full. Both parties are also responsible for making sure that the taxes and insurance on the property are kept up to date. In addition, the buyer of the property must abide by all local ordinances and laws while occupying the property. If any of the obligations of the contract for deed are violated, the seller may have the right to terminate the agreement and retain the down payment as well as any payments that have already been made. It is for this reason that signing a contract for deed is a serious commitment and should not be done without the help of a qualified real estate lawyer.

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What is a contract for deed?

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