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to Be Used with Question 12 Minnesota State Board of Law 2018

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so contract for deed is a popular type of seller financing for buyers who perhaps can't qualify for traditional bank loan financing currently but plan to be able to qualify in the future so under a contract for deed a buyer makes payments to the seller monthly for a set period of time after which there's a balloon payment at the end if the buyer performs seller gives buyer a deed at the end and the buyer legally owns the property so it's attractive to buyers who again are perhaps repairing their credit and plan to be able to qualify in the future but can't qualify right now for a mortgage or a loan through a bank and it's attracted to sellers who have found a buyer and don't mind receiving monthly payments for a set period of time risks are if the buyer can't perform or otherwise defaults then the seller can't cancel the contract evict the buyer and resell the property and if that happens the buyer loses its investment in

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