08/09/2024 | Press release | Archived content
Contracts for deed are a form of seller financing, where the seller retains legal title of a home until the borrower completes the payments. Contracts for deed are also known by other names, sometimes including "land contracts," "installment land contracts," "land sales contracts," or "bonds for deed." During the contract term, the borrower typically assumes the responsibilities of homeownership, including repairs, property taxes, and improvements. The contracts usually provide for forfeiture in event of any default in the contract terms, such as missed payments. Upon forfeiture, the seller may repossess the home and retain all accumulated equity and payments, including the buyer's downpayment and improvements made to the property. Buyers' exercise of their rights regarding the property is often complicated because the contract showing the buyer's interest is not recorded. Key findings of this report follow: