Sample Contract for Deed

  • 3 min read
  • Jun 22, 2020

When you want to start a home based business, or just run your own business, you need to read a sample contract for deed. Many states require a contract is presented before you can complete a purchase, but not all contracts are created equal.

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Purchase and Sale Agreement Template from sample contract for deed, source: nickcornishphotography.com

A sample contract for deed is usually found in the booklet that is included with the home ownership transaction. Most binders contain a sample contract for a combination of reasons. It is just easier for the mortgage lender to get a copy of the contract with which they will enter the required document when making a contract. It is also often easier for the real estate agent to prepare the contract if it is printed and provided.

There are two ways that a home buyer can pay for the contract. The first way is through a money order. The money order is drawn and the note payment is made electronically. This option is best if the buyer prefers electronic funds transfers instead of paper.

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contract for deed form – omtimes from sample contract for deed, source: omtimes.co

If the money order is drawn on a bank or credit union, the note will likely not be cashed until a week after the money has been transferred from the money order to the bank account. In the event that the note payment is sent directly to the mortgage lender, the lender will then need to process the check before the loan can be cashed. The time lag between the check being received and the money going into the account is one of the reasons that money orders are not preferred by most people. The money order method of paying for a contract is probably the easiest for the lender and the agent.

On the other hand, if the buyer prefers a money order option, then there is no time lag. The money order is processed and the note is cashed immediately. This is a better option for most people because it does not require the buyer to wait for a week or more to receive the note payment.

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32 Lovely Michigan Land Contract Purchase Agreement from sample contract for deed, source: adrianpaulpeace.org

The money order method of paying for a contract can also reduce the risk to the seller if the buyer defaults on the note. If the buyer simply receives the check and does not use the money order option, then the buyer is much more likely to default. If the seller receives the check and uses the money order option, then the seller must wait for the money to go through the bank before he can cash the check.

The time lag between receiving the money and the fact that the note is cashed will often make the second option preferable. This will not change the fact that the real estate agent will not have to worry about waiting for the check to clear before accepting the commission. It is still their responsibility to find the buyer the money before the note can be cashed.

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Lease Agreement Paper Professional Fresh Parking Space Rental from sample contract for deed, source: jinjiercl.com

As a buyer, you should always compare the time lag between the time that the contract is created and the time that the note is cashed. You should also compare the contract language to the language contained in the booklet that accompanies the property and select the best contract option for your particular circumstances.

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Quick Claim Deed for House Plus Luxury Printable Quit Claim Deed from sample contract for deed, source: indiansocial.club