A contract for deed is commonly known as a distinct type of property contract involved with a buyer and seller where a seller hands over control but not legal title of a house to the buyer. The transfer of title happens after all contractual responsibilities including the total payment of the property is written out to the seller . For example if you’re a buyer or seller in the city of San Antonio and prefer to either acquire or sell off a duplex under a contract for deed agreement, then you must realize all of the implications of accepting such a legal contract under San Antonio Real Estate Law.

Being an instrument along with a legal agreement, the land contract has its beginnings in the development of residential neighborhoods called colonias back in the 1950s. Developers bought sizeable tracts of land and developed affordable housing units. These real estate developers gave possession for the units to underprivileged Americans in exchange for a down payment and monthly installment. People that couldn’t manage institutional financing could secure possession of the 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. If the buyer and the seller have genuine objectives and agree not merely to the letter, but also to the spirit of the law behind the land contract, then it improves the chance of favorable results among both parties. Nonetheless there has been quite a few cases where unethical brokers and sellers have pawned off properties that are either encumbered or have an unclear legal history.

In order to protect the interests of buyers under a land contract, The Texas Legislature has created many changes for the existing laws that govern contract for deeds. The seller is now responsible for disclosing information associated with but not limited to the title, condition and insurance status of the property in question. The seller faces stiff penalties in the event of non-conformity to the stipulated legal requirements. The buyer of the property in question has the right to repudiate the contract and render it void ab initio. Moreover, the seller is also obliged to add a notice of buyer’s right to cancel the contract within a time of two weeks with the contract going into force.

A contract for deed agreement should consider not only the interests from the buyer, but also that of the seller. For example, if your buyer is defaulting on numerous house payments or on other contractual obligations, then the seller should have the right to repossess the house or call for foreclosure.

If you’re a resident of San Antonio and wish to buy or sell property under a contract for deed then a San Antonio Real Estate attorney can provide you with professional help. Such guidance will help inform you on both your rights and duties under the law. Often times the law is very complex and consulting with a lawyer insures that you legally positioned in the right direction. Also, reading over documents is often a time consuming process and much of it is hard to understand. Unless you completely understand what your reading its best to contact an attorney for a second opinion.

Author Bio: 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.

Category: Legal
Keywords: real estate, real estate law, real estate attorney, contract for deed, home equity loan,