How it works
You and the seller sign a contract setting the price, down payment and monthly payments. You move in and take care of the home. The seller keeps legal title until the contract is paid off (or refinanced), then transfers the deed to you.
Other names you may see
- Land contract
- Installment sale agreement
- Agreement for deed
Questions to ask before signing
- Will the contract be recorded with the county?
- Who pays property taxes and insurance, and how?
- What happens if I miss a payment?
- Can I pay it off early or refinance without a penalty?
State laws on contracts for deed differ. It is wise to have the agreement reviewed by a local real estate attorney.
Common questions
Is a contract for deed the same as a mortgage?
No. A mortgage is a loan from a lender secured by the home. A contract for deed is an agreement directly with the seller.
When do I get the deed?
When the contract is paid in full or you refinance it, as set out in your agreement.
See homes you can buy this way
Every listing shows the price, the down payment and the monthly payment up front.
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