Who has ownership with seller financing? - Posted by Todd (MN)

Posted by Houserookie on December 30, 2000 at 14:45:07:

Hi Todd,

It depends on if you offer it on a mortgage or CD.

CD is with seller, mortgage is
with buyer.

on second lien, it’s most likely a mortgage or deed of
trust. MN is a mortgage state.

Who has ownership with seller financing? - Posted by Todd (MN)

Posted by Todd (MN) on December 30, 2000 at 13:49:22:

Is seller financing the same as contract for deed? With either case who has ownership? Who pays the taxes?

Re: Who has ownership with seller financing? - Posted by dewCO

Posted by dewCO on December 30, 2000 at 19:51:11:

If you are buying, go for seller carry financing. You get the full ownership that way (as long as you make payments on time). Just like buying with a loan through a mortgage company, only it is financed through the current owner/seller. Make safer for you as a buyer. Contract for deed might be better for you as a seller, but not as a buyer.

Re: The short answer is NO, - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on December 30, 2000 at 14:49:09:

and yes to the first question. Contract for deed is as the term implies, a contract which will eventually result in the buyer getting the deed from the seller. This is a form of seller financing, that is used often in the marketplace. The seller remains the owner until the terms of the contract are met, and then delivers the deed to the buyer.

The seller, who is still the owner; will remain responsible for the taxes. Often the taxes will be billed to the contract buyer, by agreement between the buyer and seller. In my area it is common for both names to appear on the tax bill, C/O John Buyer (he will get the actual bill). Now if John Buyer does not pay, then the bill will attach the property, and the seller will eventually get to pay that bill + late fees if he desires to keep the property. There should be terms in the contract for deed that adress this problem, and who will pay the taxes, and what happens if they do not.

A contract for deed is also called a “land contract” or a “land installment contract” in some parts of the country. In any case the seller retains ownership during the payment period, and delivers the deed to the buyer when the conditions of the contract are met. The person who has the deed is the owner.