Expert: Dick Dennis - 9/18/2010

Question
If I determine to sell my home in Montana via contract for deed, what is the process?  Is a title search, title insurance, setting up an escrow (which I would like to do) part of the process?  

Answer
You need to treat the contract for deed like a regular purchase, Shawn, only the closing and title transfer will be sometime in the future. When the buyer fulfills the terms of the purchase, then he will get the title and that is when he will get title insurance.

In the meantime, if you want to know about your title with the property, you certainly may order it when you put the transaction into escrow. You may then give the buyer a copy of your title search if you want. But it is not going to have his name on it.

The buyer's peril is if you ever get sued, the title to the property will be affected and it will be your responsibility to protect his interests.

While he is living in the property and making payments to you, he may maintain and/or repair the property as he sees fit . . . unless your agreement, which is part of the contract for deed, says otherwise.

If he does not make the payments as agreed, then you will have to commence with foreclosure action as if it was a regular mortgage. As you can see, you're going to need to consult with a real estate attorney to put the contract for deed together and make sure your interests are protected.

I do wish you well, Shawn.


Dick Dennis
dixiedee13@aol.com