Legal Question in Real Estate Law in Illinois
contract for deed
I am interested in buying a rental property from my parents on contract. I am not familiar with the steps I need to take in order to do this.
Is it required that I pay interest? Is it as simple as drawing up a contract between my parents and I? Thanks in advance for your help. This is a great service! I look forward to your reply.
1 Answer from Attorneys
Re: contract for deed
Yes, it is a great service. Now, to your question, which is a little more complicated that you might imagine, since you really did not state your goal. Let me explain. If you wish to purchase the property from your parents NOW, but as typically happens in situtations such as this, you don't have the downstroke, can't qualify for a loan, etc., a contract for deed would work. This is a complicated process, requires drafting of a contract, and your parents, as sellers, would have to provide you with a title insurance policy, etc. There will be two closings. If you just want to make sure that your parents sell you the property in the future, then what you want is an Option to Buy. Clear?
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