What this due-diligence check covers
The label varies by state: contract for deed, installment land contract or agreement for deed. The rights and remedies can differ from a conventional mortgage.
Review the actual document and local law, not a generic online form.
Why it matters before closing
A buyer may invest in improvements while lacking recorded title or facing forfeiture after default.
What to verify
- Verify seller title and existing debt.
- Calculate full amortization and balloon.
- Clarify deed delivery, recording, taxes and insurance.
- Review cure periods and default remedies.
Red flags that deserve follow-up
- Seller can encumber or resell before deed transfer.
- Buyer responsible for taxes but receives no notices.
- Forfeiture after substantial equity.
- No process for releasing seller liens at payoff.
Evidence to keep in the parcel file
- Executed and recorded agreement
- Title commitment
- Payment ledger and amortization
- Escrow or servicing arrangement
Questions to ask before the deadline
- When does the deed transfer?
- Is my interest recorded?
- Who pays taxes and receives notices?
- What cure period applies?
- How is final payoff and deed release handled?