What is a contract for deed?
A contract for deed (also called a land contract or real estate contract) is a sale where the buyer moves in and pays you in installments, but you keep legal title until the buyer finishes paying. Then the deed transfers to them.
It’s one form of seller financing. The main difference is who holds title while payments are being made.
Benefits for sellers
- You keep title until you’re paid in full.
- A higher price is common, because buyers get access they wouldn’t have otherwise.
- Monthly income with interest.
- A bigger pool of buyers, including self-employed and credit-rebuilding buyers.
What to watch out for
- Default takes a legal process. If the buyer stops paying, Utah law sets out how the contract can be enforced. It’s not as simple as changing the locks.
- Your existing mortgage. If you have one, its due-on-sale clause needs to be addressed.
- Who pays taxes and insurance. The contract must spell out who handles property taxes, insurance, and repairs.
- Recording. The contract (or a notice of it) should be recorded with the county so everyone’s rights are clear.
Important: A contract for deed is a legal agreement. I coordinate with a title company and recommend a Utah real estate attorney review the contract. This page is general information, not legal advice.
Contract for deed vs. note and trust deed
With a note and trust deed, the buyer gets title at closing and you hold a lien on the property. With a contract for deed, you hold title until the end. Many Utah sellers choose a trust deed because foreclosure rules are more familiar, while others prefer keeping title. I’ll lay out both so you can decide.
How we get started
Tell me about your home and your goals. I’ll compare a contract-for-deed sale to a traditional listing and an as-is cash offer, with real numbers for each.
