Real Estate Flipping

Real estate contracts can be a good source of higher returns for investors. These contracts are referred to as contract for deed or land contracts. The name could any of this but all these represent the same concept. The same concept is known by different names in different states. The behavior of both parties in these agreements vary from transaction to transaction.

There are mainly two types of contracts on the basis of payment. One is when the full payment on the seizure and the other is when full payment is not made at the time of possession is made. If the transaction if the first type of purchase and sale of a property then owned by the seller to the purchaser shall soon, however, if the transaction of the second type such as a lease-purchase deal then it will take some time to the property seller's transfer to the buyer. The parties entering a contract the second type are the basis of transfer of ownership to be understood in these transactions.

Transfer of Ownership

Owner in case of leasing is employed by the seller to the buyer only after full payment to the seller by the buyer as agreed in the agreement transferred. During the time the contract is not closed and the seller is not paid in full, the legal title of the property with the seller but that does not mean that the buyer has not yet received anything. While the buyer paid to the seller, the buyer receives possession of the property and receives the interest. This interest is referred to as "Equitable Title".

As the contract?

The seller has to recover rights to this title fair if the purchaser in the production of all the payments over time as agreed in the contract. The seller can begin the process of restoring the equitable title, by legal notice to the buyer before 30 days and then cancel the contract. The recovery of equitable ownership, retains the legal title to the property with the seller, but if the buyer all payments to the seller in the agreement then the legal title of property transfers from the seller agreed to the buyer. The transfer of legal title does the buyer owns the property. A separate certificate is required to transfer title to the buyer. It is a fact, the guarantee will be held in the escrow account. Understanding the basics of transfer of ownership will help the parties to close the property for successful contract.

Bookmark & Share