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jhuflava · Joined: 04 May 2005 Posts: 5

I asked this question before but now I have more details, so here it is again if there are any real estate professionals or lawyers.I have a buyer that wants to execute a contract for deed. The contract details the amount they will pay, and more importantly the fact that the buyer gets the deed once the seller's mortgage or selling price is paid. Only issue is that the buyer would like for me to execute a quit claim deed first. Is this normal for a quit claim deed? Has anyone been thru this? This seems legal but I'm afraid that I'll be left with a mortgage and the other person has the deed and the right to do whatever they want to the house. Any input is apprieciated. Thanks in advance.

theshadow01 · Joined: 11 May 2005 Posts: 5

Someone is trying to leave you holding the bag. DO NOT sign a Quit Claim until the buyer has satisfied their financial obligation, or your fears will be realized and they will have the house in their name and you will still owe the mortgage.

karenmartinsville · Joined: 18 May 2005 Posts: 6

I'm a real estate agent in Indiana, and I'm not sure about your state, but in Indiana, a contract for deed is just like you providing the buyer a mortgage. If he defaults and doesn't make payments you will have to FORECLOSE this is a very long process. This is because a contract for deed is considered a equitable lien on the property, you could not sell your home, even if they are not on title. I would suggest a Lease/W Option, and if he insist on have his name on deed why not put title in a trust. I'm not a lawyer and this is not meant to be legal advice, just my two cents.

BOBF · Joined: 26 May 2005 Posts: 6

I am not sure exactly what your question is but if the buyer wants you to give him directly a quit claim deed, you have given him ownership of the property if you own it subject to any liens.I think what the buyer is probably asking you for is for a quit claim deed that is held in a long term escrow. Once all payments on the contract are made, the deed is recorded and the buyer becomes the owner. This is a common practice with contract for a deed BECAUSE if you die or can not be located when all of the payments on the contract are made, there will be a long and expensive court case for the buyer to get clear title to the property.BOB FORD

mcmufin · Joined: 02 Jun 2005 Posts: 3

In Florida, contracts for deed and articles of agreement are nothing other than recipes for litigation that will take place years after the documents are signed. I refuse to assist my client with them.Additionally, what the buyer proposes is NOT normal. Executing a quit-claim deed first will only serve to guaranty you never get paid. Quit-claims and contracts for deed are mutually exclusive. You either use a deed (quit-claim, special warranty, or warranty) with a separate mortgage, or you use a contract for deed. You NEVER use both up front.Do one of two things. First, go through a title company and require the buyer to get an institutional mortgage. You will be paid at closing and you will never have to worry about the property or the payments again. Second, hire an attorney to draft a deed and a mortgage with you as lender. You will have to foreclose if the buyer doesn't pay, and you will have to make sure all payments are received, but you will have to do both of those with a contract for deed, anyway. Personally, I recommend the title company.