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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55278
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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how is a land contract (contract for deed) different from a

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how is a land contract (contract for deed) different from a normal purchase and sale agreement?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. With a contract for deed, the title doesn't transfer to the buyer until the buyer has fully performed under the agreement by paying the entire purchase price. In the traditional sale, the title transfers at the initial closing and at that closing the buyer gives the seller/lender a promissory note secured by a lien on the property to secure buyer's performance on the promissory note.

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Customer: replied 4 years ago.

is a contract for deed a separate document to be used in place of a purchase and sales contract? what language distinguishes it from a regular purchase and sales contract?

Thanks so much for following up. Yes, they are two separate contracts....the contract for deed is used when title doesn't transfer until later whereas the purchase and sale contract is used to set forth the traditional closing where the title changes at closing. The differentiation is when title transfers. If contract for deed, to protect the buyer, the buyer is going to want the document recorded to put third party on public notice that buyer has a beneficial ownership interest in the property so that the seller cannot put a lien on the property that gets priority during the period between the contract and when title transfers.
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