Contract for Deed (Land Contract) - Idaho

A Contract for Deed, also known as a Land Contract, in Idaho is a legal agreement between a buyer and seller for the purchase of real estate. It allows the buyer to make payments directly to the seller, who retains ownership until the agreed-upon purchase price is fully paid.

In Idaho, the contract for deed, also known as a land contract, is generally filed by the seller (or the party providing the financing) with the County Recorder's Office.

FAQ

Q: What is a Contract for Deed?A: A Contract for Deed, also known as a Land Contract, is a type of agreement where a buyer makes installment payments directly to the seller, who retains legal title to the property until the payment is complete.

Q: How does a Contract for Deed work?A: Under a Contract for Deed, the buyer is allowed immediate possession of the property while making periodic payments to the seller. The buyer does not receive the legal title until the full payment is made.

Q: Is a Contract for Deed common in Idaho?A: Yes, Contract for Deed arrangements are relatively common in Idaho, especially for properties that may not qualify for traditional financing.

Q: What are the benefits of a Contract for Deed?A: A Contract for Deed can be beneficial for buyers who may not qualify for traditional financing. It allows them to purchase a property and build equity over time.

Q: Are there any risks with a Contract for Deed?A: Yes, there are risks involved with a Contract for Deed. If the buyer fails to make the payments, they could lose the property and all the equity they have built.

Q: Can a Contract for Deed be canceled?A: Yes, a Contract for Deed can be canceled under certain circumstances, such as the buyer failing to make payments or violating the terms of the agreement.

Q: Is it necessary to hire a real estate attorney for a Contract for Deed?A: While not required by law, it is highly recommended to involve a real estate attorney to ensure that the contract is legally sound and protects both parties.

Q: What happens when the Contract for Deed is paid off?A: Once the buyer completes all the payment obligations, the seller transfers the legal title to the buyer, and the contract is considered fulfilled.