Can someone explain what a Contract for Deed is and how it works? :roll: Thanks in advance. :biglaugh
bjlongoria,
Welcome to the board.
Selling on contract for deed is when you owner finance a property to someone, but don’t give them the deed until they pay you off.
It’s basically what car dealers do. You get the use of the car, but you don’t get title to the car until you pay off the note.
Same basic principle in real estate. It makes taking a property back easier because you don’t have to foreclose. You can just evict them instead.
Texas recently changed its contract for deed laws and now there are more regulations you have to abide by in order to sell contract for deed.
That’s a simple explanation, hope it helps.
Thank you so much for your response. You made it a whole lot clearer.
From all that I have hear about new laws on contract for deeds I am not using them any more. I did 30 of them in the past and would still use them if not for the new law. I hate new laws but we must need them to protect people with no money and credit to buy a house. Hope this helps too.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
What are the new laws reagrding CFD?
I have not read them but have only heard that it is really hard to evict a owner that is under a contract for deed. You actually have to go to court and it will not be a JP court. I do not know how it works but it has been made a lot harder. I read or was told just to do a note and deed of trust to be safer and less costly
Happy Holidays and Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Does this mean to me that if I have a contract for deed it put the property in my name and in doing so would it then make the property refinancible without the large down?
Does not mean you have to do anything. CFD are still legal and if yours was before a certain date it mat still OK as is. Some friends of mine are converting their raw land CFD 's into notes and deeds of trust. I believe they are smart to do so but I do not know where you fit in. I believe it would be better for both of you to use the note and deed of trust but am not sure.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
CFD and the new laws… I have a paper here somewhere given to me 2 weeks ago by the lawyer my parents had to hire because they sold on a CFD telling of all the new changes… He advises not only to NEVER sell on cfd anymore, but to convert all your cfd to deed of trusts. My parents are having to pay back every penny the new buyer has paid to date… 12K. There are MANY changes and they are drastic! Save yourself a ton of trouble, and money and avoid them in my humble opinion.
Heather Zaal