Legal Question in Real Estate Law in Oregon

Re: Oregon contract for deed

You'll really need an opinion from an Oregon attorney, but based on general principles I'd say a "contract for deed" is probably NOT what you want to use. In most states, a "contract for deed" is not a deed; it is a document covering an installment-plan purchase whereby the seller keeps legal title to the property until all the payments are made, then delivers title. Although the buyer gets possession at the outset (usually, at least), the buyer is not the owner until the payments are made, and thus cannot give a mortgage or deed of trust on the property, and could not get an equity line of credit because the buyer has no equity.

I'd think one of the more conventional deed forms would better suit your transaction, i.e. either a grant deed (or warranty deed, I don't know what they're called in Oregon), or a quitclaim deed.

Note that the actual language inserted in the blanks in any deed will vary depending upon whether (1) this is a case of X, the current 100% owner, selling 50% to Y and retaining 50%, so the result is X 50% and Y 50%; or whether (2) X and Y each currently own 50% and Y is selling his interest to Z, so the resulting ownership will be X 50% and Z 50%, or whether (3) X currently owns 100% and is selling 50% to Y and 50% to Z, so the result is Y 50% and Z 50%.

You will also need to specify whether the resulting ownership is as tenants in common or joint tenancy.

Professional preparation of deeds is always recommended.