Contract for Deed in Minnesota
Thinking about buying a home using a Contract for Deed in Minnesota? New fact sheet explains how they are different from a mortgage and some of the risks.
Thinking about purchasing a home using a Contract for Deed in Minnesota?
BE CAREFUL! There are legal risks and obligations when buying a house with a Contract for Deed in Minnesota that are different from the risks and obligations when purchasing with a traditional mortgage.
The most important thing to realize is that a Contract for Deed is not a mortgage or a lease, even though sometimes they are marketed as a rent-to-own or lease-to-own arrangements.
In Minnesota, the contract for deed seller is not a landlord; and the contract for deed buyer is not a tenant.
A buyer using a Contract for Deed in Minnesota does not have the same rights or protections as a tenant. Additionally, the contract for deed buyer does not have the same rights or protections as a buyer purchasing with a mortgage.
To fully understand the value of, and risks associated with, a Contract for Deed, the Minnesota Homeownership Center worked with the Minnesota Foreclosure Partners Council, the Family Housing Fund and many other partners to create a new in-depth Fact Sheet about Contracts for Deed.
To view or download this information-packed fact sheet, click here.