Dallas residents looking for local legal counsel to understand and interpret the complexities of Contract For Deed (CFD) should look no further than UpCounsel. With access to experienced business attorneys boasting an average of 14 years of experience and an impressive client rating system, UpCounsel is the answer for legal services among the Fortune 1000 and small businesses alike.

The legal agreement of Contract For Deed is an alternative to more traditional real estate sales arrangements. CFDs are subject to tremendous variation state to state, and the rules and regulations of the Texas Department of Savings and Mortgage Lending should be followed closely. Further complicating matters, certain Dallas neighborhoods are subject to additional requirements and ordinances. Navigating the intricacies of CFD in Dallas can be a daunting prospect.

That’s why it is important to acquire the assistance of a legal professional experienced in the ins and outs of the CFD process. UpCounsel’s network of attorneys is there to help any party involved in a Dallas CFD agreement understand the terms, obligations, and rights of both seller and buyer.

Before signing a contract of any sort, one of the most prudent steps in the process is to ask questions of a qualified lawyer versed in the intricacies of contract law, and customarily questions will arise during contract negotiations as well. UpCounsel serves as an answer to those questions, providing cost-effective legal services of the highest caliber.

What follows is a brief overview of the more common questions regarding CFDs, addressed with the information-seeker in mind.

What is a Contract For Deed?

A CFD is an agreement between two parties in which an individual agrees to buy a certain property for an agreed-upon amount of money over a set period of time. The seller of the property forgoes the typical mortgage and accepts a periodic, directly paid payment in lieu of a larger, lump-sum payment. This arrangement is not to be confused with a mortgage, as the buyer takes the role of a tenant until the total amount of the sale has been fulfilled.

Who is Involved in a Contract For Deed?

The two obvious parties in a CFD are the seller and the buyer. However, a third, optional, involvement in the contract is that of a Title Company. A Title Company, or Escrow Company, serves as an impartial third party that helps to ensure that all requirements of the agreement are fulfilled, including payment arrangements and deadlines, as well as paperwork and filing. Transactional costs such as these are customarily included in the contracted amounts.

Where is Contract For Deed Legal?

Due to variations in state and local ordinances, not all states consider CFD agreements legal. Contract For Deed agreements are legal in the state of Texas, however, an additional steps must be taken for these contracts to be binding by Dallas courts. As mentioned previously, it is wise to understand the rules and regulations of the Texas Department of Savings and Mortgage Lending before drawing the agreement.

What are Common Terms and Conditions of a Contract For Deed?

Contracts for Deed negotiations, like that of any legal agreement, are customized to the arrangement. Buyer and Seller can dictate the agreed sale amount, as well as how much and how often the buyer will make payments. A customary agreement will have a predetermined sale amount, with the buyer making fixed monthly payments with interest along with an agreed amount of collateral to ensure payment.

What are Some Common Disadvantages of a Contract For Deed?

The most chronic drawback with a CFD lies in the fact that, due to contractual nature of the agreement, the buyer is not supplied the same legal protections he or she would get with a typical mortgage agreement. Additionally, due to the “lease-to-own” nature of the contract, the buyer is on the hook completely by way of taxes and insurance relating to the property, essentially assuming the position of an owner. Once again, due to local ordinances, these rules are subject to superseding by Dallas courts.

Is UpCounsel the Answer?

Simply put, yes. UpCounsel offers an exceptional provider of legal professionals familiar with the nuances of contract law. Their attorneys boast a combined experience of over 14 years and clients in the professional and business sector can rest assured knowing that they can trust UpCounsel’s network of specialized lawyers and support staff.

It’s important to remember that the solution to all legal issues lies within the understanding of local regulations, and UpCounsel is the perfect conduit to acquiring accurate information regarding matters of Dallas Contract For Deeds and beyond.

Topics:

Contract For Deed,

Dallas CFD,

Texas Department of Savings and Mortgage Lending