Reselling Contract For Deed

I would like to know the best way of going about structuring this deal:



I buy a house on CFD for $80,000. The house is worth $100,000. Can I sale the CFD for $70,000 to another buyer? (I have my reasons for that).

1. Do I still have more priority ownership over the property than the 2nd buyer?

2. Do I still get some tax benefits?

3. If 2nd buyer defaults can I sell the property, on CFD?

Comments(3)

  • JohnLocke1st November, 2005

    nearneshka,

    Glad to meet you.

    Q. I buy a house on CFD for $80,000. The house is worth $100,000. Can I sale the CFD for $70,000 to another buyer? (I have my reasons for that)

    A. Do you understand what a Contract for Deed is? Are you thinking you can sell the CFD for $70K cash?

    Q. 1. Do I still have more priority ownership over the property than the 2nd buyer?

    A. NO

    Q. 2. Do I still get some tax benefits?

    A. NO

    Q. 3. If 2nd buyer defaults can I sell the property, on CFD?

    A. NO

    John $Cash$ Locke
    [addsig]

  • InActive_Account2nd November, 2005

    Each states different. If yuor cfd buyer defults you will either ahve to evict or foreclose. After you kick them out then you rcan resell on cfd.

  • JohnLocke3rd November, 2005

    I do not see a reason why you could not sell your Contract for Deed to someone else provided there is language in the CFD that allows you to do this.

    Under a Contract for Deed, the seller retains "legal title" to the property until the contract is paid in full. For you to create a new CFD without holding "legal title" and in your case you do not, I would recommend against doing it this way.

    John $Cash$ Locke
    [addsig]

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