Re: Contract for Deed - Landlord Forum thread 199715

Re: Contract for Deed by OK-LL on April 4, 2010 @09:45

Here in OK, a Contract for Deed is treated as a deed and mortgage. It transfers equitable title to the buyer and the sellers takes the position of mortgage holder. So even if the contract defaults the first month, the seller has to foreclose to recover marketable title. Many of the contract for deeds are written with a clause that says it reverts to a lease agreement in case of default and resulting tenant will be evicted, but that is not an enforceable clause here. Sellers under contract for deed will sometimes require buyer to pre-sign a quit claim deed reverting the property to seller, to be used in case of default. Those QCDs can be attacked in court and usually fail. BUT if you have a buyer who doesn't know those clauses and QCDs are not enforceable, you may get an easy recovery if they move out quietly, which is why they are included in the transaction. Just FYI.

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