What do you think of buying a home on contract?
Answer:
Well, a mortgage is a contract. Most are sold that way.
Now, if you're talking "contract for deed" that opens a huge can of worms. You should NEVER enter into a contract for deed without the guidance and advice of an experienced real estate attorney. If the agreement isn't drawn up properly you may be left holding the bag at the end of the contract with nothing to show for it and no way to get your deed.
Two common problems arise in my part of the country. In one case, the person offering the contract doesn't have legal title to the property and therefore cannot confer the deed when the contract is completed. The other extremely common problem is when the seller has encumbered the property (used it as security for a loan such as a mortgage or home equity loan) and still owes money on that when the contract for deed is paid off. In this case, the seller will not be able to confer clear title; it will still be subject to the existing mortgage or deed of trust. The buyer may have to get a mortgage to pay off the loans on the property!
A real estate attorney can help you avoid both of these situations and will ensure that the contract is fair and reasonable to both parties.
Get everying in writing down to the last detail.
what do you mean, contract? Is it rent to own or something? Will it be in your name?
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