What about an owner finance/contract for deed?

Question

I am getting ready to buy a home and property. There are 2 brothers, one owns property, and other the house. We are not getting the whole property just the front peice. The guy seems honest but I know NOTHING about buying a house and what it entails. He said I would not need to record the contract at the courthouse until I am done paying for it, but I think I should. Also, he said he would not have it surveyed until it was paid for but I asked if he would include the dimensions on the paperwork. He said he would show us where the property lines were. I would rather have some type of proof 20 years from now where he told me our yard ended!!!! I just need anyone who has ANY advice, horror stories, or information about this type of contract and what to look out for. I have a real estate guy that will look at it for free, but it's a small town and who really knows!!

Answer 1

If you are buying a house and land for $500, go ahead.  Even $5,000.  Maybe you will lose some money but you got a place to live for cheap. If you are paying $50,000 or more, do not purchase on a Contract for Deed.  That is a huge mistake.  He may not be able to deliver clear title in 5 years or 25 years.  THen you are stuck.  Get a loan and cash them out.  Get a Warranty Deed.

Answer 2

Have a Real Estate Attorney Draw up a contract and you need to run the home/land thru an escrow.. Even if you need to pay the escrow yourself do it thru an escrow...You will have a title insurance company to back your claim up not the scam artists.

Answer 3

get yourself a lawyer to draw up the contract.  i know someone who entered into a similar contract where they thought they were paying off the house with the rent.  when it came to turn over the deed,  the owner wanted the full amount of the contract with no money applied from the rent.  my friends had to  do all the repairs on the house thinking they were paying it off and therefore the owners.  be careful. good luck.

Answer 4

You are an idiot, who will lose all the money she has paid with NO claim to the property! Think woman think!!