Contract for Deed (Land Contract) - Arizona

A Contract for Deed, also known as a Land Contract in Arizona, is a legal agreement used for the purchase of real estate. It is a way for a buyer to make payments directly to the seller over time, instead of obtaining a traditional mortgage loan from a bank. The buyer gains possessory rights to the property while making the payments, but the seller retains legal ownership until the full purchase price is paid.

In Arizona, the seller typically files the Contract for Deed (Land Contract).

FAQ

Q: What is a Contract for Deed?
A: A Contract for Deed, also known as a Land Contract, is a legal agreement between a buyer and a seller for the purchase of property.

Q: How does a Contract for Deed work?
A: Under a Contract for Deed, the buyer agrees to make regular payments to the seller over a specified period of time, and the seller retains ownership until the full payment is made.

Q: Is a Contract for Deed common in Arizona?
A: Yes, Contract for Deed transactions are common in Arizona as an alternative to traditional mortgage financing.

Q: What are the benefits of a Contract for Deed?
A: Some benefits of a Contract for Deed include flexible financing options, potentially lower closing costs, and more lenient credit requirements.

Q: Are there any risks with a Contract for Deed?
A: Yes, there are risks involved with a Contract for Deed including the potential for the buyer to default and lose their investment if they are unable to make payments.