What is a Contract for Deed?

A Contract for Deed, also referred to as a land contract, is a type of residential real estate law document found in Arizona and other states. It’s a legally binding agreement between two parties--a buyer and seller--wherein the seller agrees to transfer ownership of property to the buyer in exchange for periodic payments. The seller retains title to the property until the buyer makes all the payments required in the contract. When this happens, the seller will officially transfer the deed to the buyer and the buyer will officially own the property. Contracts for Deed usually give the buyer the right to take possession of the home and usually include details such as the purchase price, down payment, interest rate, and payment terms. The buyer may also be responsible for maintaining the property and paying the taxes and insurance. The buyer needs to read the contract for deed very closely to make sure the agreement is fair and the details are clear. In Arizona, the Contract for Deed should be recorded in the County Recorder’s Office in order to be valid. This way, the contract will be visible to any third parties who are looking into the property, and any past liens against the property will be revealed. Overall, a Contract for Deed is an important residential real estate document that is used in Arizona and other states. It is a legally binding agreement between two parties that provides the buyer with the right to take possession of the property and requires the seller to transfer the deed to the buyer after all payments are made.

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What is a Contract for Deed?

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