Need help with a contract for deed preparation? At TexasLegalDocs, we can take care of your legal problems online in a jiffy.
Despite its widespread use in Texas, a Contract for Deed, sometimes known as an executory contract, rent to own, or lease purchase arrangement, is not always an appropriate way to transfer property. On a contract for deed, title to a property does not transfer to a buyer until it is fully paid for. It is often used in situations where a seller needs to get out from under monthly obligations on an existing mortgage, but a buyer cannot qualify for their own financing. Such an arrangement brings with it numerous challenges for both buyer and seller, as outlined in detail in the articles and videos linked in the TLD Library. Moreover, state law has now imposed some extremely severe regulations on contracts for deed lasting over three years, making them a dubious choice indeed. However, if the parties desire a contract for deed arrangement for less than three years, the following questions should be answered in order for us to prepare correct and enforceable documents.