Respuesta :
Answer:
Seller retains the right to the property
No professional appraisal is required, so you might pay more than the home is worth
Explanation:
A contract for deed is one that does not have the standard transfer of title from the seller to the owner. Rather the seller of a property retains title ownership while the buyer pays installmentally over time.
This agreement is common where the buyer does not meet requirements to obtain a loan. A small down payment can be made initially.
Disadvantages of contract for deed includes:
- Seller retains rights to the property, and he can cancel the contract if the buyer defaults even once on his payments.
- No professional appraisal is required, so you might pay more than the home is worth. There is no requirement for appraisal of the property so the buyer does not have a reliable estimate of property worth.
The disadvantages of a contract for deed are the seller retains the right to the property and No professional appraisal is required, so you might pay more than the home is worth.
What is a contract for deed?
A contract for deed is one that does not have a standard transfer of title from the seller to the owner. Instead, the seller retains the title deed while the buyer pays the installments over time.
This agreement is usually when the consumer does not meet the requirements for obtaining a loan. A small payment can be made in advance.
Therefore, the disadvantages of contract for deed include:
The seller has property rights, and he can cancel the contract if the buyer fails even once in his payments. No professional appraisal is required, so you might pay more than the home is worth.
There is no need to inspect a property so that the buyer does not have a reliable estimate of the value of the property.
To learn more about contract for deed, refer:
https://brainly.com/question/17134803
