Practical guide
Contract for deed: you may not own what you think
In a contract for deed, the seller keeps the title until you have paid in full — which means one missed step can cost you the home and every payment.
Reviewed August 3, 2026 · Educational guidance, not legal or financial advice
How it works, and where it bites
A contract for deed (also called a land contract) is seller financing: you pay the seller in installments and move in, but the seller keeps the legal title until the last payment is made. Buyers typically take on taxes, insurance, repairs, and maintenance before receiving the deed.
If you fall behind, the seller may try to end the contract, evict you quickly, and keep the money and work you put into the home. Federal mortgage protections may apply, but the CFPB warns that sellers do not always provide them.
Before you sign
Have a housing counselor or a real estate attorney read it. Ask who holds the title, what happens if you miss a payment, and whether the price and terms are recorded publicly.
Then compare it against a verified first mortgage plus assistance. For many buyers who were told "you can only do a land contract," a program on this site is a safer road to the same door.
Sources
- What is a contract for deed? — Consumer Financial Protection Bureau
- Consumer protections for home sales financed under contracts for deed — Consumer Financial Protection Bureau