What is a Contract for Deed?

A Contract for Deed, also known as an installment land contract or bond for deed, is a type of residential real estate law commonly used in North Carolina. It is an agreement between a seller and buyer in which the seller agrees to transfer legal title of a property to the buyer once certain criteria have been met, typically when the entire purchase price has been paid. The buyer agrees to make periodic payments to the seller until the purchase price is satisfied. The Contract for Deed is often used in residential real estate transactions as an alternative to a mortgage. It can be a useful tool for buyers who may lack the credit or income to obtain a loan from a bank, as the seller is typically more willing to provide a loan to the buyer, without the standard credit check or other requirements. In North Carolina, if all the stipulations of a Contract for Deed are met, the buyer will be granted legal title of the property by the seller. The buyer will typically have full ownership of the property and all the rights and privileges of a homeowner. However, if the buyer defaults on their payments or does not meet the criteria of the contract, the seller can take legal action to reclaim the property. Therefore, it is important for buyers to understand the terms and conditions of the contract before signing.

Related FAQs

What is a deed of trust with a power of sale?
What is a Release of Lien?
What is an option to purchase?
What is a home equity loan?
What are the benefits of a home warranty plan?
What is a comparative market analysis?
What is a Notice to Quit?
What is a Contract for Deed?
What is a disclosure statement for a landlord-tenant agreement?
What is residential real estate law?

What is a Contract for Deed?

Related FAQs

Related Blog Posts