Contract for Deed (sometimes referred to as a Land Contract) – Missouri use and applications:

When Buyer Cannot Qualify for Traditional Financing.

Often used by buyers who may not meet bank loan requirements due to credit or income issues.

When Seller Financing is Preferred or Necessary.

When Sellers may offer this arrangement to broaden their buyer pool or avoid dealing with banks.

When Property is Being Sold “As Is”.

Often used in cases involving older or distressed properties where a conventional mortgage would be harder to obtain.

Investment Property Transactions.

Sometimes used in investor deals where holding title back until payment completion is part of the deal structure.

For Sale by Owner (FSBO) Deals.

Common in informal or family transactions without a real estate agent.

Land Sales or Rural Property.

Sometimes used when raw land or agricultural property is sold, especially if the buyer is planning gradual development. Use this form for residential property, rental property, Condominiums, vacant land, small commercial property and planned unit development property. For use in Missouri only.

Things to Consider:
Buyer Risk: Since legal title doesn't transfer until full payment, the buyer can lose the property (and payments made) if they default.

Seller Risk: The seller may have to go through legal action (sometimes similar to eviction or foreclosure) if the buyer defaults.

Recording: Buyer shall be authorized to execute and record this “Contract for Deed” or an “Affidavit of Equitable Agreement” on or after Initial closing.

Back to Missouri