What is a Contract for Deed?

A Contract for Deed is a type of agreement typically used when transferring residential real estate property in South Carolina. This agreement is often used when the buyer does not have enough money to purchase the property in a single transaction. Under a Contract for Deed, the buyer agrees to make a down payment, followed by periodic payments until the entire purchase price of the property is paid in full. Once the buyer makes full payment, the ownership of the property is officially transferred to the buyer. The seller retains a lien on the property, meaning they can repossess it if the buyer fails to make payments on time or otherwise violates the terms of the Contract for Deed. The buyer is typically responsible for all expenses related to the property, such as taxes and utility bills, while the seller bears the responsibility for maintaining insurance on the property. Prior to executing a Contract for Deed, it is important for both the buyer and the seller to seek independent legal counsel, as this type of agreement is highly technical and subject to certain laws and regulations. Additionally, if both parties agree to enter into such an agreement, the contract must be in writing and signed by both parties in order to be legally binding.

Related FAQs

What is a certificate of title?
What is dual agency in a real estate transaction?
What is commercial real estate law?
What is a condominium and what are the requirements of purchasing one?
What is a quit claim deed?
Are seller disclosures mandatory?
What are escrow instructions?
What is a Contract for Deed?
What is a servitude?
What is the process for filing a complaint against a real estate agent?

What is a Contract for Deed?

Related FAQs

Related Blog Posts