This article is to inform you of what clauses are a MUST for putting in your Contract For Deed forms. Weather you are selling a house, or buying a house on contract for deed, you need to understand ONE thing. This contract is for ME. No matter which side you are on. No remember In a good deal everybody wins! But don't make the grave mistake of writing your contract for deed without these clauses.
Thats right, use these clauses that I took out of a contract that my contract wizard (a checklist 20 question style program that writes contracts for you) wrote for me. Implement them into any contract for deed, and you now have an open door policy on your contract! Some of these clauses are for the seller, some are for the buyer!
Note: Do not change the wording, these clauses use words that have different meaning to lawyer's. So do not change the wording or they will lose there spunk!
#1. The Lease Clause:
Clause For Contract For Deed
SELLER shall provide BUYER with written proof that all leases are in effect and that there have been no modifications or amendments and indicating the amount of any security deposits, pre-paid rent or any funds held by SELLER. Such funds shall be transferred free of charge, to BUYER.
That doesn't seem to complicated does it? Well let me explain it a little better!
This clause means that the Seller must prove in writing that all leases and agreements are what they are represented to be and all pre-paid rents and other funds held by the Seller become the property of the Buyer free of charge. With out this clause you open yourself up to a potential loss. This clause is a must for short sale contracts!
What if you want out of the sale before it is complete? You will LOVE this clause! It too is a must for short sale contracts!
#2. One of my favorite weasel clauses.
Clause for contract for deed:
Contingent upon approval of BUYER'S Business Partner (Husband or Wife, Accountant, Business Manager, etc.)
This clause means that the Buyer is not obligated to go through with the purchase if his/her Business Partner, Husband, Wife, etc. objects for any reason. Sometimes you just need a few of these type clauses in your short sale contracts just in case, and for good reason!
#3. Another weasel clause for contract for deed!
Clause: Contingent upon BUYER'S approval of a complete inspection report (Roof, Foundation, Heat, Cooling, Electricity, Plumbing, etc.) to be paid for by SELLER *
Let me explain, this clause means that the Seller must pay for a complete inspection report and if the Buyer does not like what the inspection reveals, then he/she does not have to complete the purchase.
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