Land Contract, What Is It? | Mortgage

A contract for deed serves as a special version of a property contract involving a buyer and seller where a seller hands over control but not legal title for a house to the buyer. The transfer of title comes together after all contractual requirements including the total payment of the asset has been made to the seller . To illustrate if you are a buyer or seller in the city of San Antonio and plan to either get or sell off a property within a installment sale agreement, then you should be aware of all of the implications of stepping into such a legal agreement under San Antonio Real Estate Law.

by AudusZinkman

A contract for deed serves as a particular version of a home buying contract involved with a buyer and seller where the seller gives possession but not legal title of the property to a buyer. The transfer of title happens after all contractual requirements including in full payment of the property is made to the seller . For example should you be a buyer or seller in the city of San Antonio and wish to either invest in or sell a property under a installment sale agreement, then you should be aware of all of the ramifications of stepping into such an agreement under San Antonio Real Estate Law.

Being an instrument along with a legal arrangement, the land contract has its origins in the development in residential neighborhoods referred to as colonias back in the 1950s. Builders bought substantial tracts of land and developed less costly housing units. These real estate developers gave possession for the units to underprivileged sections of the population in exchange for a down payment and monthly installment. Those that couldn't afford to pay for institutional financing were able to secure possession for a house sans the legal title.

These days, the success of the contract for deed has depended on the degree of good faith included in the agreement. When the buyer and also the seller have honest intentions and agree not merely to the letter, but also to the spirit of the law behind the installment sale agreement, then it increases the possibility of favorable results between both sides. However there have been quite a few cases where unscrupulous brokers and sellers have pawned off properties which were either encumbered or have an unclear legal history.

So as to safeguard the interests of buyers under a installment sale agreement, The Texas Legislature has made a number of changes for the existing laws that govern contract for deeds. The seller is now liable for disclosing information concerning but not limited by the title, condition and insurance status of the property under consideration. The seller faces stiff penalties in case of non-conformity to the stipulated legal requirements. The purchaser on the property in question has the right to repudiate the contract and render it void ab initio. In addition, the seller is also obliged to incorporate a notice of buyer's right to terminate the contract within a period of two weeks of the contract going into force.

A contract for deed agreement should include not just the interests from the buyer, but also that of the seller. For instance, in the event the buyer is defaulting on numerous property payments or on other contractual obligations, then the seller should have the right to repossess the home or call for foreclosure.

If you are a resident of San Antonio and wish to buy or sell a property under contract for deed then a San Antonio Real Estate attorney can provide professional help. Such guidance will help inform you on both your rights and duties under the law.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Audus Zinkerman Provides Information on San Antonio Real Estate Law in the State of Texas. He is well versed in many areas including foreclosure law, commercial law, and commercial law. He has worked in the field for over ten years and enjoys helping others.