Certificate of compliance with the building code.Due dates of additional charges or fees due at the date of sale or at a later date.Statement about what changes to the property must be approved by both buyer and seller, including requirements to provide permits, insurance and lien waiver agreements.Statement about who is responsible for making and paying for repairs.Statement about when the buyer will obtain the title.Any known limitations on the property (such as liens or mortgages).Seller's interest in property being sold.Type of insurance coverage to be required or provided.

Annual insurance payment amount for prior year.Amount of real estate taxes for the prior year.Assessed value according to the property tax bill for the prior year.Fair cash value according to the property tax bill for the prior year.Statement that the amount of taxes and insurance may change each year.Amount of insurance and property taxes for the first year.Who will pay real estate taxes and insurance, and whether or not they are included in the monthly payment.Whether a lump sum ('balloon') payment is due at the end.Interest rate (expressed as an annual percentage rate).Amount of the down payment to be applied to the price, and the resulting principal to be paid on the loan.Legal description of the property or address of the property.The contract must clearly state the following information: You must get a written contract that is signed and notarized by both parties. Be cautious with a Contract for Deed that asks for a big down payment. Note: Most Contract for Deed sales only need a small down payment. The requirements of the law are listed below. It only applies to contracts signed 1/1/18 or later. The law applies to sellers of 1-4 unit residential properties who enter into contracts more than 3 times in any 12-month period. So you should talk to a lawyer if you are considering this option. Use the Get Legal Help tool to find a lawyer.īecause Contracts for Deed have been abused, there is a law that requires certain things to be in the contract for certain sellers. However, it gives you fewer rights and protections than a mortgage loan. This could be because of a credit issue, or a lack of down payment. This is commonly used by people who cannot get a mortgage from a bank. Once the house is paid off, the buyer gets the deed recorded in the buyer's name. The buyer pays the seller monthly payments that go towards payment for the home. The buyer moves in when the contract is signed. The seller finances the property for the buyer. What is a Contract for Deed ?Ī Contract for Deed is a way to buy a house that doesn't involve a bank.

Illinois contract for deed template