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Lease / Option vs. Contract for Deed
Many investors are generally
familiar with the concepts lease option and contract for deed (aka
"installment land contract"). Many investors confuse the two, and this
article will help you understand the tax, legal, and practical issues
between the two.
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Contract for Deed Package
A Contract for Deed is sometimes also know as a Land Contract,
Agreement for Deed, Contract Sale or Real Estate Installment
Agreement. This type of Document allows the Seller to retain the
title to the property and agree to transfer the title to the
Buyer once all the payments under the Agreement are made and all
other obligations are met. In essence, the Seller finances the
purchase and holds the title or deed as security. When the Buyer
completes the required payments, the Seller must deliver valid
legal title by way of a deed. During the period of the contract,
the Buyer makes installment payments on the purchase price and
is entitled to possession and equitable title to the property.
The Seller holds legal title and continues to be liable for
payment of any underlying mortgage.
The forms can be downloaded and
accessed immediately.
Commissioned Mortgage Loan Officer and Marketing Combo: Launch
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Enroll today! This is a self-paced, online course. You have 6
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Eleven Best Kept Secrets To Buying Real Estate
This is a practical and down-to-earth course that
discusses 11 of the best techniques to buying real estate with
little or none of your own money. I have gone to great lengths
to keep this course simple yet giving you the information you
will need to go out and start buying real estate right away.
Knowledge is power. The more you know the more you will get
ahead of your competition and reach your financial goals. This
course is simple, direct and to the point. I will not waste your
time with a lot of information that leaves you wondering what to
do next.
How to Prepare, Stage and Sell Your Home
This course will help the seller create an
individualized house preparation timeline, outline simple steps
to eliminate potential problems, give ideas about decluttering,
cleaning, repairing, and show you how to stage your house for a
successful Open House.
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Land Contracts & Their Use
A Land Contract, also known as
a Contract for Deed is similar to a lease with option to buy in that the
monthly payments you make over a predetermined period of time is applied
to the purchase price, making up your down payment. In some cases, you
may even be able to pay the entire price in this fashion.
Contract for Deed Overview
A contract for deed is made
when you agree in writing to purchase real property (for example, land
or a site-built home) by making monthly payments, but the seller keeps
the deed (in his or her own name) until you have made all payments due
under the contract.
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