A contract for deed serves as a particular kind of real estate property contract involving a buyer and seller in which the seller releases control but not legal title for the property to the buyer. The transfer of title occurs after all contractual requirements including the total payment on the asset has been written out to the seller. For instance should you be a buyer or seller in the city of San Antonio and need to either acquire or sell a town home within a land contract, then you must understand the full pros and cons of stepping into such an agreement under San Antonio Real Estate Law.
As an instrument and a legal arrangement, the land contract has its beginnings in the development in residential neighborhoods named colonias during the 1950s. Builders bought huge tracts of land and developed affordable housing units. These real estate developers gave possession for the units to underprivileged citizens in exchange for a down payment and monthly installment. Individuals that could not have the funds for institutional financing had the ability to secure possession of the house sans the legal title.
Nowadays, the success to a contract for deed has depended on the amount of good faith included in the contract. If for example the buyer along with the seller have honest aims and agree not merely to the letter, but also to the spirit of the law behind the land contract, then it increases the possibility of favorable results between both parties. Nonetheless there has been quite a few cases where unscrupulous brokers and sellers have pawned off properties that are either encumbered or come with an unclear legal history.
So as to protect the interests of buyers under a contract for deed, The Texas Legislature has made many changes to the existing laws that govern contract for deeds. The seller is now responsible for disclosing information relating to but not limited to the title, condition and insurance status on the property under consideration. The seller faces stiff penalties in case of non-conformity on the stipulated legal requirements. The buyer of the property under consideration has the right to repudiate the contract and render it void ab initio. Moreover, the seller is also obliged to add a notice of buyer’s right to end the contract within a time of two weeks with the contract coming into force.
A contract for deed agreement should include not only the interests from the buyer, but also that of the seller. For instance, if the buyer is defaulting on numerous home payments or on other contractual obligations, then the seller should have the right to repossess the house or call for foreclosure.
If you’re a resident of San Antonio and want to buy or sell property under land contract then a San Antonio Real Estate attorney can offer you professional help. Such guidance will help inform you on both your rights and duties under the law.