What is a Contract for Deed?

A Contract for Deed, sometimes known as an installment sale agreement or land installment contract, is a form of real estate financing used in South Dakota. It allows the buyer to take possession of the property and make payments to the seller but title to the property will not be transferred from the seller to the buyer until the entire purchase price is paid in full. A Contract for Deed generally involves two parties: the seller, known as the grantor, and the buyer, known as the grantee. The grantor retains legal title to the property until the contract is fulfilled and the grantee becomes the owner of the property. The terms of this type of agreement are usually determined by the grantor and grantee and are written out in a contract. These documents typically include the purchase price of the property, terms of payment, and any other restrictions. The most important part of a Contract for Deed is the process of transferring title when the contract is fulfilled. This process typically involves the grantor executing a deed to the grantee, and the grantee then recording this deed with the county recorder’s office in order to transfer legal title to the property. While a Contract for Deed can be a convenient way to purchase a property in South Dakota, it can also be risky. If the grantee fails to make payments according to the terms of the contract, the grantor can repossess the property. For these reasons, it is wise to seek legal advice before entering into a Contract for Deed.

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What is a Contract for Deed?

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