Home Buying in Waltham>Question Details

Sarah Neal, Home Buyer in Arlington, MA

Why are "Contract for Deed" properties seem to be so popular in Waltham?

Asked by Sarah Neal, Arlington, MA Mon Oct 1, 2012

I'm seeing quite a few "Contract for Deed" listings in Waltham. It's my understanding that this is similar to a "lease to own" deal. Anyway, I am avoiding them like the plague. Why are they so popular?

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Lynne Hagopian’s answer
I agree with Linda..contract for deed is written on most listings that are typical transactions between a seller and a buyer to perform per contract certain agreed upon items to convey the deed from seller to buyer. This is not a lease to own deal so please ask your buyer's agent to help you understand some of the technical terminology. I would be glad to help if you would like further information.
Lynne Hagopian
Hammond Residential
508 648-0393
LHagopian@hammondre.com
0 votes Thank Flag Link Tue Feb 26, 2013
To answer your question most of them are not real Contract for Deed properties. Most Realtors around here think Contract for Deed means a typical Real Estate transaction. In the Midwest Contract for Deed means the same thing as Land Contract around here. (Don't believe me? Type in Contract for Deed in RocketLawyer.com and see what kind of contract pops up, or do a Google search for the definition. It implies that the owner will carry or finance however he will not deliver the deed until after the contract has been fulfilled. I have bought two properties this way in the Midwest. One in Minnesota and one in South Dakota. Both involved a substantial down payment and a balloon payment so the sellers wouldn't have to wait to long for their money. Both of my Contract for Deed purchases worked out great. However I have read horror stories about people overpaying because their is no appraisal, or the contract holder getting foreclosed on even though the Contract for deed buyer is on time on his payments. Then losing his home and his substantial down payment due to the sellers irresponsibility. If you ever buy a property that is owner financed they should own it outright. There should be a preliminary title search and there should be nothing clouding the title. Their should be title insurance. Their should be something in the Contract saying they cannot take out a loan on the property while you have equitable interest in it. You should definitely have the Contract For Deed recorded at the registry of Deeds. You should also have a appraisal done even though it is not required, or at minimum a BPO (Broker Price Opinion) or a CMA (Comparative Market Analysis) Realtors will usually do a CMA for free as long as you work with them on your deal. If anyone is looking for a Realtor who has some experience in this area please give me a call Donald Kjornes 978-846-6736 Thank You in advance Here is more unbiased information from the Fed on (Contract for Deed)
0 votes Thank Flag Link Fri Jan 24, 2014
Contract for Deed refers to the typical conveyance of a property from one party to the other. The "contract" referred to is the Purchase and Sale Agreement signed by the parties which outlines the time and place for conveyance of the Deed. This is not a "lease to own" or any other atypical transaction, but rather, the standard process for conveying property. If you would like help in your home search, call me 617-974-2568
0 votes Thank Flag Link Fri Oct 12, 2012
Lease options usually appear more often in a poor selling market.


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0 votes Thank Flag Link Sat Oct 6, 2012
tacky to ask for a TU or best answer
Flag Fri Jan 24, 2014
It is a way for seller to get a buyer in an unhealthy economy and a way for a buyer with a less-than-stellar credit rating to get financing. Doesn't always work out...
0 votes Thank Flag Link Mon Oct 1, 2012
Thanks Masha - I appreciate the quick reply! You confirmed what I thought.
Flag Mon Oct 1, 2012
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