Make Legal North Carolina Contract For Deed Forms For Free

In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union. The arrangement can benefit buyers and sellers by extending credit to homebuyers who would not otherwise qualify for a loan.

Drafting of legal documents, including deeds, mortgages, and other transaction documents must be prepared by a NC attorney. NCGS § 84-2.1. Non-attorneys may provide limited services in a real estate closing including witnessing of closing documents and receipt and disbursement of closing funds.

The deed must contain, at minimum, an identification of the grantor and grantee, consideration (usually the amount of money paid) and a legal description of the real estate. It may refer to the real estate by lot number as shown on a recorded plat or by a lengthy metes and bounds description prepared by a surveyor.

If you're the buyer in a contract for deed arrangement, you need to be aware of the following risks. Property maintenance. One contract for deed drawback is the uncertainty over who's responsible for what. ... No foreclosure protection. ... Balloon payment. ... Seller retains title. ... Less consumer protection.

? An agreement, whether denominated a "contract for deed," "installment land contract," "land contract," "bond for title," or any other title or description in which the seller agrees to sell an interest in property to the purchaser and the purchaser agrees to pay the purchase price in five or more payments exclusive ...

While it is acknowledged that a contract for deed can help those who currently have poor credit or an otherwise tough lending situation, it isn't a good idea in most cases. There are several reasons why: The seller retains the title.