What is a Contract for Deed?

A Contract for Deed is a legal agreement between a homeowner (the seller) and a home buyer (the buyer) in the residential real estate market in New York. It is an alternative to a more traditional purchase and sale agreement. In a Contract for Deed, the seller transfers title to the buyer at the time of the agreement, but the seller does not receive full payment until later. Under a Contract for Deed, the buyer agrees to make regular payments to the seller in order to purchase the home. In exchange, the seller transfers the title to the buyer and agrees to deed the property to the buyer upon full payment of the purchase price. This can be done over a period of time (known as the contract period), or the full amount can be paid up front. The contract also contains information about the property (such as the location and size of the house or the amount of land it is built on), any restrictions, and the amount of money the buyer must pay each month. A Contract for Deed is a legally binding document and both parties must comply with the terms of the agreement. Typically, the seller retains the right to foreclose on the property if the buyer does not make payments on time or is otherwise in breach of the contract. Conversely, the buyer can sue for specific performance if the seller fails to deliver the deed as promised.

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What is a Contract for Deed?

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