Q: Wondering if a contract for deed needs to be recorded? Thx
A: Good practice for contracts for deed arrangements would normally include three safeguards: A deed in escrow, payments in escrow, and an affidavit of equitable interest filed with the Register of Deeds. The deed in escrow by grantor naming the purchaser as the grantee ensures that a deed is available to record once all of the payments are made. Making payments to an escrow agent ensures that credit is recorded for payments and that the taxes and insurance are being paid while the escrow and contract for deed are pending. An affidavit of equitable interest is a document prepared and signed by the purchaser. Once recorded, the affidavit tells the world of the purchaser's interest in the property ar of the contract for deed. The recorded notice prevents a third party purchasing or accepting a mortgage on the property from claiming it was unaware of the contract for deed and the equitable interest the purchaser is acquiring.
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