What is a contract for deed? - Posted by Greg

Posted by Stacy (AZ) on May 29, 1999 at 12:22:04:

However, in many states, if you SELL using a contract for deed it is easier and quicker to get rid of a buyer if they go into default. In AZ, for example, the foreclosure period is only 30 days if the buyer owns 10% or less equity in the property. For example if the property is worth $100K, and the total of downpayment and pricipal reduction the buyer has paid is less than $10K, he can be removed in 30 days.

It may be an advantage for you if you are selling a property to use a contract for deed. By the way, it’s called “Agreement for Sale” in AZ. But, I wouldn’t use it to buy unless there was no other way to get the deal done.

Check your state’s laws.


What is a contract for deed? - Posted by Greg

Posted by Greg on May 28, 1999 at 03:18:09:

How does a contract for deed work?

Re: What is a contract for deed? - Posted by Jim Kennedy

Posted by Jim Kennedy on May 28, 1999 at 18:20:18:


A contract for deed is an installment selling arrangement where the buyer gets to use/occupy the property but does not receive a deed until the terms of the contract are fulfilled. Since the seller does not give the buyer a deed, legal title does not pass to the buyer; however, the buyer does have EQUITABLE title during the term of the contract.

A contract for deed is called by different names depending upon the area of the country you?re in, but basically the concept is the same. It can be called a land contract, installment contract, installment land contract, installment sales contract, conditional sales contract, contract for deed, or bond for deed. The laws governing contracts for deed (or whatever it is called in your area) vary from state to state.

Because there are some distinct disadvantages to the buyer using a contract for deed, one should exercise caution. Depending upon the specific circumstances of an individual transaction, there may be a much safer way for one to acquire a property.

Best of Success!!

Jim Kennedy,
Houston, TX

Re: What is a contract for deed? - Posted by mike

Posted by mike on June 04, 1999 at 11:58:41:

What are they called in PA?