Agreements for Deed
A Flexible Path to Property Ownership
What is an Agreement for Deed?
An Agreement for Deed (also known as a Contract for Deed or Land Contract) is a real estate financing strategy where the seller agrees to finance the purchase of a property directly. The buyer makes payments over time, and once the terms of the agreement are fulfilled, the seller transfers the deed to the buyer.
Unlike traditional financing, the buyer does not receive the legal title until the agreement is fully satisfied. This strategy allows buyers to acquire property without going through a bank or securing a traditional mortgage.
How Agreements for Deed Work
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1
Sales Agreement
The seller and buyer agree on the purchase price, payment schedule, and terms.
2
Possession and Payments
The buyer takes possession of the property and begins making regular payments to the seller.
3
Interest and Terms
The seller may charge interest on the unpaid balance, and the buyer may have the option to refinance.
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Transfer of Title
Once the buyer has completed the payment terms, the seller transfers the deed and full ownership to the buyer.
Benefits of Agreements for Deed
For Buyers
For Sellers
Easier qualification than traditional bank financing.
Opportunity to secure a property while building credit.
Flexible payment terms tailored to the buyer’s financial situation.
Attract more buyers, including those who may not qualify for a traditional loan.
Generate passive income through interest payments.
Retain control of the property until the agreement is fulfilled.
For Buyers
Easier qualification than traditional bank financing.
Opportunity to secure a property while building credit.
Flexible payment terms tailored to the buyer’s financial situation.
For Sellers
Attract more buyers, including those who may not qualify for a traditional loan.
Generate passive income through interest payments.
Retain control of the property until the agreement is fulfilled.
