Buy or Sell Property Without a Mortgage Using a Contract for Deed in Missouri
Buying and selling property in Missouri doesn’t need to be a complicated process. There is a method that enables both buyers and sellers to agree on a seller-financed property deal known as a contract for deed.
DoNotPay understands that you may not be comfortable with writing a contract or dealing with legal documents and that you want to avoid the expense of lawyers whenever you can. We are here to help you draft an ironclad contract for deed in Missouri!
What Is a Contract for Deed?
A contract for deed is a legal agreement between a real property owner and a buyer for the buyer to purchase the seller’s property by installment. In other states, this type of agreement may be known as a land sale contract or an installment sales contract.
The buyer and the seller agree on a final purchase price, an interest rate, and the number of installments to be paid. They then sign a contract to that effect, and the buyer takes equitable ownership of the property, with all its requirements for upkeep, insurance, and property tax payments.
The seller retains the deed and legal ownership until the final installment has been paid.
What Are the Pros and Cons of a Contract for Deed?
There are several advantages to this form of property deal for both the buyer and the seller. They are:
| Party |
Advantages |
| Buyer |
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| Seller |
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A contract for deed is not without risks to both parties, though. You can find the most important ones in the table below:
| Party |
Risks |
| Buyer |
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| Seller |
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With all this to consider, why not let DoNotPay and save you the worry?
What Does a Contract for Deed Have To Include?
Whether you are the buyer or the seller, you need to include the following elements in a contract for deed in Missouri:
- Names and details of the buyer and seller
- Description of the property
- Property inspection
- Full sale price, installment amounts, and number of installments
- Interest rate
- Closing costs
- Terms of possession
- Governing law
Names and Details of the Buyer and Seller
You should include the full names, addresses, and contact details of both the buyer and the seller.
Property Details
The contract for deed should describe the property in full, including its:
- Street address
- Plot details as they appear on the deed
- Exact location
- Outward appearance
Inspection of the Property
The buyer should confirm that they have inspected the property fully, have noted any faults or repairs needed, and accept them as seen. For added security, both parties can agree to have the property appraised by a qualified building inspector.
Full Sale Price, Installment Amounts, and Number of Installments
The full sale price, amount to be paid in each installment, and the number of monthly installments need to be written into the contract.
The contract can also include:
- Any down payment to be made by the buyer
- Any balloon or residual payment at the end of the contract to cover fees or costs to transfer the deed into the buyer’s name
Interest Rate
You should include the agreed interest rate charged on the sale.
Closing Costs
If there are foreseeable costs at the end of the contract—such as deed transfer costs or the cost of recording the transaction with the county clerk—you should agree on who is responsible for paying them.
Terms of Possession
The contract should clarify when the buyer is allowed to take equitable possession of the property. This will normally coincide with the signing of the contract and the payment of the first installment or upfront amount.
Governing Law
You should clarify the state under whose law the contract will be governed. This will usually be the state in which the property is located.
Can DoNotPay Help Me Draw Up a Contract for Deed?
Using the above guidelines, you can draw up a contract for deed, making sure that both parties sign it in the presence of a notary to give it as much legal weight as possible.
DoNotPay has a range of legal documents and contract templates you can customize to suit your requirements.
All you need to do to get your tailored legal document is:
- Navigate to DoNotPay in your web browser and
- Use the search function to find the document you need
- Fill in the details you want included
- Wait while we create your custom document
What Kind of Legal Documents Can DoNotPay Help You Draft?
We are expanding our portfolio every week, and here are a few examples of the documents we can offer at the moment:
- Property documents
- Lease agreement
- Real estate purchase agreement
- Estoppel certificate
- Quitclaim deed
- Intent to purchase real estate
- Business documents
- Bill of sale
- Independent contractor agreement
- Operating agreement
- Non-disclosure agreement
- Non-compete agreement
- General business contract
- Personal documents
- Custody agreement
- Prenuptial agreement
- General affidavit
- Promissory note
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