Home Buying in 55046>Question Details

Lori, Home Seller in Brook Park, MN

If a buyer does not record a contract for deed, is the contract for deed more of a rental agreement vs a deed?

Asked by Lori, Brook Park, MN Wed Oct 23, 2013

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6
It's a Contract . . . for . . . a . . . Deed. Different type of good question, would love to hear what's behind the question. Yet, if something's happening that you are wondering about, please call an attorney sooner rather than later. Some will give you simple advice consult on the phone and you won't have to sit 'wondering' about whatever it is. Good luck to you.

Kim Eisen
(651) 457-HOME (4663)
0 votes Thank Flag Link Wed Oct 23, 2013
No, it's like a purchase & sale agreement.

It is nothing like a deed. A deed transfers rights. A contract is an agreement to eventually receive a deed when sufficient payment is made.

All the best,
0 votes Thank Flag Link Wed Oct 23, 2013
I agree with the other posts that this in fact should be asked of an attorney but I will throw in a few thoughts I do know. If a buyer does not record the CD they could be subject to penalties, it even states that on most basic CD's. If it is not recorded that does not make more of a rental agreement, the CD is still valid just not recorded which jeopardizes the interest for the buyer.
0 votes Thank Flag Link Wed Oct 23, 2013
Hi, Lori!
While I do agree with my colleagues here that this is a legal issue and you should seek advice from a good real estate attorney, on it's face, this does impact the contract. A contract for deed is a mortgage, and, as such, needs to be recorded as a lien against the property the same way any other mortgage is recorded with the county/state/municipality. So, that means the buyer's name is recorded on the deed as the new owner and the mortgage is recorded as a lien that the buyer is responsible for.

Absent that, it would mitigate the legal hold the buyer has on the property. This is JUST my take on how this type of transaction works. I advise you to consult a lawyer for a definitive answer.

Good luck!
0 votes Thank Flag Link Wed Oct 23, 2013
I agree with Suzanne. This sounds like a great question for the attorney who helped you write the C4D. Give them a call and see what they say.

Cameron Piper
Keller Williams Premier Realty
612.839.4202
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Wed Oct 23, 2013
This sounds like a legal question to me. I would suggest you consult an attorney. Real Estate professionals are not attorneys and are not permitted to give legal advice.
0 votes Thank Flag Link Wed Oct 23, 2013
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