Loveland, CO asked in Real Estate Law for Tennessee

Q: Are Land Sale Contracts/Contracts for Deed/Real Estate Contracts legal and enforceable in Tennessee?

I am looking at acquiring the seller's interest in a Installment Land Sale Contract on property in TN. I've bought in other states, but not sure if they are used in TN and as such are they enforceable in TN? Is a judicial foreclosure required? Thank you

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1 Lawyer Answer
Anthony M. Avery
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Answered
  • Knoxville, TN
  • Licensed in Tennessee

A: A Contract For A Deed is just a Lease With Option To Purchase. Most "buyers" have Detainer Warrants filed on them way before they get close to exercising their option. The landowner has all the leverage here. And often the landowner will be foreclosed on, have a tax sale, etc., with the tenant with an option contract thrown out. A Declaratory Judgment Action might be needed, in addition to Breach of Contract, to enforce them.

My advice is stay away from them. And the Contract may not be assignable. Instead make an offer to the owner for a Deed, giving him back a Note and a Deed of Trust, so you are the titled owner. But first conduct a Title Search.

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