Posted by Don on December 09, 2003 at 10:31:38:
I am considering buying a piece of property on a contract for deed. Does the owner that I am buying it from have to own the property free and clear of a mortgage? My thinking is that there is a “due on sale” clause in most mortgages that state you need to pay the mortgage at the time you sell the property. Is a contract for deed an actual sale at the time it is drafted and recorded, or is it an acutal sale at the time the contract is fulfilled and I receive the deed?