What is a Real Estate Contract?

Sellers providing owner financing might elect to use a Real Estate Contract, Contract for Deed, or Land Contract to document the transaction rather than a Note and Mortgage or Note and Deed of Trust.  There are both advantages and disadvantages to carefully consider when choosing a Contract.

The big difference with a Real Estate Contract is that the buyer will not receive the Deed to the property until the full amount the seller financed is paid in full. The seller remains the title holder while the buyer is making payments.  A contract is like a layaway program for the Deed. Read more