Contract
for Deed is a legal procedure also known as “Agreement for Deed”, “Contract for
Sale” or “Land Installment”. It is one of the procedures followed when you are
transferring your house or any other property. There are several situations in
which contract for deed is used. If the property is on the verge of
foreclosure, contract of deed is considered as the basic possible option for
both, seller as well as purchaser.
Contract
for deed varies with varied States. The rules and regulations that are followed
in different States are set in accordance to the laws of that State. Dean
Graziosi believes that following the credit crunch of 2007-2010, the demand and
policies of real estate
has been
changed. This changing has also affected contract for deed. Dean believes that one
must get all information regarding contract for deed before proceeding.
Dean
Graziosi is a real
estate magnet.
He is a successful entrepreneur who has made his life out of blues. He is one
of those who are willing to lead their life following their ambitions and
dreams. He started business of real estate at the age of 18, purchased his
first property and renovated it. Today, after more than two decades, Dean has
established a name and a reputation that can never be questioned.
What is A Contract for Deed?
It is an
agreement used to transfer rights of possession from seller to buyer. In the
light of this contract, the buyer usually obtains all the rights on the
property. In some other cases, seller keeps the rights of the property until all
the payment is made. Once the buyer has made all of the agreed payment, the
seller will transfer the property to the buyer, also termed as delivery of the
deed.
Who Signs This Type of Contract?
There
are various reasons why sellers as well as buyers opt for contract for deed on
all other methods of property transfer. Sometimes the reason behind choosing
this form of property transfer is to make the property safe from foreclosure. Another
reason is to sale a low cost property on high price. However, one can also keep
the process foreclosure possible. This is done by keeping a clause in the
contract for deed that states foreclosure intact in case there is some dispute
or the buyer fails to pay mortgage.
In fact
this clause helps resolve any future conflicts and disputes. In most cases it
is believed that seller gets more advantages under this form of agreement. In
case if the buyer is unable to pay mortgage, all the money paid as a first
installment goes to the buyer and the property is usually foreclosed.
In rare
cases, if the seller dies before handing over the deed to the buyer the buyer
will have no or very little way to claim the deed. In most cases, the buyer
will roam around the descendents of died man. In case the parties, buyer as
well as seller want to get fair share
out of the deal, they must consult a good attorney. This will help in sorting
out the agreement according to the legal demands.
Contract
for deed is also signed in cases the buyer is directly purchasing property from
seller. There is no lender (banker or private funding). The deal is directly
signed between buyer and seller. Again the deed is handed down to the buyer
once the payment is completed.
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