Articles of Agreement for Deed

Articles of Agreement for Deed: A Comprehensive Guide

When it comes to real estate transactions, there are several types of legal documents that are involved, one of which is the Articles of Agreement for Deed. In simple terms, this is an agreement between two parties – the seller and buyer – on the transfer of property ownership. If you’re a real estate investor or buyer, it’s essential to understand what these documents entail and how they work.

What are Articles of Agreement for Deed?

Articles of Agreement for Deed, also known as land contract or contract for deed, is a legal document that outlines the terms and conditions of the sale of a property. It’s a type of financing arrangement in which the buyer agrees to pay the seller over time until the purchase price is fully paid. This means that the buyer does not have to obtain financing from a traditional lender like a bank or mortgage company.

Instead, the buyer makes installment payments to the seller until they have paid the entire purchase price. Once the buyer has made the final payment, the seller then transfers the title to the property to the buyer. The seller provides the buyer with a deed, which is proof of ownership.

What are the Key Elements of Articles of Agreement for Deed?

1. Purchase Price: This is the cost agreed upon by the buyer and seller for the property.

2. Payment Schedule: This outlines the installment payment plan that the buyer will follow to pay off the purchase price.

3. Interest Rate: This is the rate of interest that the buyer will pay to the seller for financing the purchase.

4. Late Payment Charges: This outlines the penalties that the buyer will pay if they fail to make their payment on time.

5. Default: This section outlines what will happen if the buyer defaults on their payments.

6. Property Description: This section describes the property being sold, including its location and boundaries.

7. Restrictions: This section outlines the restrictions on the property, such as zoning regulations or HOA rules.

8. Closing Date: This is the date by which the buyer must complete the payment and take possession of the property.

9. Signatures: This is where both the buyer and seller sign the agreement, indicating their consent to the terms and conditions.

What are the Benefits of Using Articles of Agreement for Deed?

1. No Credit Check – Traditional lenders like banks and mortgage companies require borrowers to have good credit scores. With Articles of Agreement for Deed, the buyer doesn’t have to worry about credit scores.

2. Faster Closing Process – Articles of Agreement for Deed allows for a quicker closing process as the buyer doesn’t have to wait for a traditional lender to approve their loan.

3. Flexible Terms – Buyers and sellers can negotiate the terms of the agreement, including the purchase price, payment schedule, and interest rate.

4. No Down Payment – In most cases, the buyer does not need to pay a down payment, making it easier to own a home.


Articles of Agreement for Deed is a financing arrangement that allows buyers to purchase property without having to go through traditional lenders. While it has several benefits, it’s essential to understand the terms and conditions before entering into an agreement. As a buyer, make sure to work with an experienced real estate attorney who can guide you through the process and help you make an informed decision.