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Contract for Deed: What Is It?

A contract for deed is a legally binding agreement between a buyer and seller of a home or land. A contract for deed is used when a buyer doesn't qualify for traditional lending options. This document includes a description of the home or land, the total purchase amount, the amount of payments that will be made, and should be signed and dated by both the buyer and the seller. With a contract for deed, the seller keeps the deed in their name until the property is paid off in full.

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