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Include the agreed upon purchase price, down payment amount, interest rate and payment details. You should also outline the payment schedule and how and where payments are to be made. Besides monthly payments, you'll want to define if they will have to pay a final lump sum or balloon payment at the end of the term.
Similar to a bank-financed transaction, the buyer receives the title from the seller upfront, via the deed, as soon as the closing documents are signed and down payment is made.
?Executory Contracts? include contract for deed, lease-purchases, and lease-options. Texas law did not outlaw these methods: contract for deed, lease-purchases, or lease-options, but it has made them perilous for those still interested in trying to use them.
A contract for deed is an agreement to buy property. The buyer makes monthly payments directly to the seller. When the final payment is made, the seller transfers the deed to the buyer, who becomes the new owner.
Contract for deed is a contract for the sale of land which provides that the buyer will acquire possession of the land immediately and pay the purchase price in installments over a period of time, but the seller will retain legal title until all payments are made.