Legal Question in Real Estate Law in California

contract for deed (or sale)

I am interested in learning about ''contract for Deed (or sale)'' Are they still used in California and how do they work?I have an unusual property and want to sell it to someone that I have had some dealing with in the past.The person cannot qualify for a conventional loan at the moment but will be in a better position in four years.This person wants to buy now but I need to keep the mortgages in my name and paid until they can sell another property and get a sizible down-payment.The purchaser bought another property from me some years ago and we were very happy with the situation.This is a little different ,as I am now retired and not in the same financial position that I was when we did the previous trans-action.I would like this particular buyer to have the property and it would be a reasonable deal for both of us.So we heard of this type of transaction ''Contract for Deed9or sale)'' and think it would work BUT I know nothing about how it is structured or wether it is a legal deal in California.Please reply as soon as possible.Thank you,Lucy


Asked on 5/30/04, 5:17 am

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: contract for deed (or sale)

You need to do something like an all inclusive deed of trust in addition to the contract for sale. It is possible that your loan has a due on sale clause, by which they could require that you pay off the mortgage if you sell the property.

This is not a question for the internet. Since you are retired, and this is probably part of your retirement, you should obtain the services of a real estate attorney in your area.

Read more
Answered on 5/30/04, 2:08 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California