What Is A Contract For DeedA contract for deed is a special type of real estate contract involving a buyer and seller where a seller gives possession but not legal title of a house to the buyer. The transfer of title occurs after all contractual obligations including the total payment on the property is made to the seller. To illustrate if you're a buyer or seller in a city such as San Antonio and would like to either invest in or sell a home under a installment sale agreement, then you should be aware of all of the ramifications of entering into such a contract under San Antonio Real Estate Law.
As an instrument and a legal arrangement, the contract for deed has its origins in the development of residential neighborhoods called colonias back in the 1950s. Builders bought substantial tracts of land and developed less costly housing units. These real estate developers gave possession of the units to underprivileged people in exchange for a down payment and monthly installment. Individuals who could not have the funds for 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 level of good faith built into the contract. When the buyer and the seller have genuine aims and agree not merely to the letter, but also to the spirit of the law behind the contract for deed, then it improves the chance of successful results among both parties. Nonetheless there have been quite a few cases where unethical brokers and sellers have pawned off properties which have been either encumbered or come with an unclear legal history.
So as to protect the interests of buyers under a contract for deed, The Texas Legislature has created quite a few changes on the existing laws that govern contract for deeds. The seller is now responsible for disclosing information in relation to but not limited by the title, condition and insurance status of the property in question. The seller faces stiff penalties in the event of non-conformity on the stipulated legal requirements. The purchaser of the property under consideration has the right to repudiate the contract and render it void ab initio. Moreover, the seller is also obliged to incorporate a notice of buyer's right to terminate the contract within a period of fourteen days with the contract going into force.
A contract for deed agreement should consider not only the interests of the buyer, but also that of the seller. For example, in the event the buyer is defaulting on numerous home payments or on other contractual obligations, then the seller should have the right to repossess the property or call for foreclosure.
If you are a resident of San Antonio and would like to buy or sell a property under installment sale agreement then a San Antonio Real Estate attorney can provide professional help. Such guidance can help inform you on both your rights and duties under the law.
About the Author:
Juan Valdez 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. For more information visit, www.san-antonioattorney.com