Contract for Deed (Land Contract) - Georgia (United States)

A Contract for Deed, also known as a Land Contract in Georgia, is an agreement where the seller finances the purchase of property directly with the buyer. It allows the buyer to make regular payments towards the purchase price over time, while the seller retains legal ownership until the full payment is received.

In Georgia, the buyer typically files the contract for deed (land contract) with the county clerk's office.

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 seller for the purchase of property.

Q: How does a Contract for Deed work?A: In a Contract for Deed, the seller finances the purchase of the property and the buyer makes regular payments directly to the seller.

Q: Is a Contract for Deed the same as a mortgage?A: No, a Contract for Deed does not involve a traditional mortgage lender. The seller acts as the lender in this arrangement.

Q: What are the advantages of a Contract for Deed?A: Advantages include easier financing for buyers with less-than-perfect credit, flexibility in negotiations, and quicker property transfer.

Q: What are the risks of a Contract for Deed?A: Risks include potential financial loss if the buyer defaults, limited legal protections for the buyer, and the risk of property liens from the seller.

Q: Is a Contract for Deed common in Georgia?A: Yes, Contract for Deed arrangements are fairly common in Georgia as an alternative to traditional financing options.

Q: How can I create a Contract for Deed in Georgia?A: To create a Contract for Deed in Georgia, it is recommended to consult with a real estate attorney to ensure all legal requirements are met.