LEGAL & RISK DISCLOSURES

Contract for Deed transactions involve legal and financial risk. Please review these terms and disclosures carefully before proceeding.

Key Contract for Deed Disclosures

Title
The seller typically retains legal title to the property until the Contract for Deed is paid in full or refinanced.

Buyer Interest
The buyer generally holds equitable interest in the property but does not receive legal title until payoff.

Default Risk
Missed payments or violations of the Contract for Deed terms may result in default and loss of the buyer’s interest.

Insurance
The buyer is typically required to maintain property insurance as specified in the contract and may be required to list the seller as loss payee.

Taxes, Utilities, and Maintenance
The buyer is generally responsible for property taxes, utilities, maintenance, and compliance with local ordinances during the contract term.

Refinancing
Refinancing is not guaranteed. Qualification depends on credit, income, appraisal, and lender requirements at the time of application.

Independent Due Diligence
Buyers are strongly encouraged to obtain independent inspections and professional legal and financial advice before entering a Contract for Deed.

  • Hire a Minnesota real estate attorney to review all documents
  • Order an independent property inspection
  • Confirm insurance requirements with a licensed insurance agent
  • Understand the payment schedule, term length, and any balloon payment obligations

Have Questions About the Contract Structure?

If you have questions about how a Contract for Deed is structured, contact us to discuss general process information.