How to Transfer a Land Contract With the Sale of a Duplex

A duplex allows the buyer to lease out one side to offset property expenses.

A land contract, sometimes referred to as a contract for deed, is a real estate transaction where the seller finances the purchase over time to the buyer. Buyers may not qualify for traditional financing, and the seller may be eager to lock in a sale price in a turbulent real estate market. When selling a duplex or any other property, the land contract transfers the deed upon the completion of the land contract -- when the seller is paid in full.

Instructions

1. Complete the terms of the land contract. This means all work is completed on the home as agreed to by the seller, and the buyer has paid the entire amount in full according to the terms of the land contract.

2. Obtain the deed transfer form from the county recorder's office. Forms vary from state to state. If the land contract held funds and the title in a deed of trust at an escrow company, the escrow company will have the proper forms for your state.

3. Complete the deed transfer form with the new owner's information. All information must be complete and accurate.

4. Sign the deed transfer form in the presence of a notary public. Both the buyer and the seller must be present to complete the transfer.

5. Record the transfer at the county recorder's office and pay the transfer fee. Check with your local county recorder for fees and filing procedures. If you are using an escrow company, it will perform the recording for you.

Tips & Warnings

• Confer with an attorney before engaging in a land contract. Have a title company run a title search to ensure the seller has the legal right to sell the entire property without encumbrances.

References

• Real Estate Lawyers: How to Transfer Property and Deeds
• Legal Wiz; Land Trust vs. Land Contract; William Bronchick, Esq.
• Duplex Chick: If Your Duplex Buyer Can't Find a Bank, Be One; Kari Lundin; March 18, 2010