What is a Deed Agreement?
A deed contract agreement is a legal process in which the buyer of a certain property cannot purchase it in full payment. In that case, the seller of the property holds the title for the meantime until the full payment is obtained by the buyer.
A deed contract agreement is not always purposive from the beginning of the purchase. But there will always be unexpected times when the buyer's financial status is not always stable. When the buyer cannot obtain the full payment of the property, the buyer will undergo a deed contract agreement to swear to wage the property with the partnership of the seller.
A deed contract agreement can also be called "Land Sale Contract" or "Real Property Purchase Agreement". In some ways, the lease of the property may also be considered as a loan or a rental. It is also useful to those sellers who are willing to wait for the sales purchase as one of their sources of income.
How to Write a Deed Agreement?
To write an effective deed sample agreement to present to the clients, make sure that the contract includes the rights and responsibilities. These rights and responsibilities of the property that are understandable for both the seller and the buyers. Here are the following tips on how to write a deed agreement.
1. Provide the Basic Information
As you start with the deed contract agreement, layout the following basic details that must be part of your simple agreement. Create a title for the contract and provide the date when it was made. Next, name the following parties who are part of the agreement such as the buyers and sellers and full addresses of the following. Make sure to provide other necessary details of the buyer and the seller.
2. State the Property
Describe the property based on its appearance and measurements. You must also include the street address and the full legal description of the property. The legal description of a property can be found in the most recent record of the deed or ownership affidavit from the sellers. You can also contact the Recorder’s Office in the property's county where it is located and request for the legal description, as mentioned in the same article.
3. Provide the Seller's Point of View
Provide the seller's point of view about the property such as reasons for selling and so on. A seller may wish to include some materials such as appliances like washers, dryers, ovens, and refrigerators as part of the sale or not. You can clarify whether any of these personal properties are included in the sale. If the property is only the land, make sure to let the seller specify if the crops are part of the sale or a donation. You may specify this information in an executed written addendum. Execute it in the same manner as you execute the contract for the deed.
4. Define the Payment Obligations
Specify the payment obligations on the deed contract agreement. The contract must have the agreement of both parties about how the property would be paid. If the seller asked the buyers to pay the property monthly, then the other side of the party must fix their decisions.
5. Finalize the Contract
Finalize the contract by reviewing the deed to ensure that you have included the necessary details like the basic information of both parties, details about the property, etc. Provide a signature block with the buyer's and seller's printed name to settle everything. Make sure that the document is notarized to legalize.