contract for deed


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contract for deed

See bond for title.

References in periodicals archive ?
During the study period, in each successive year the difference between cash equivalent prices for contract for deed sales and sale prices for non-contract for deed sale prices were reduced by 1.
Table 3 indicates the model's estimated premium paid for contract for deed over a range of parcel size classes (20, 60, 100 acres) and years within the study period (first, middle, last).
Possible Explanations for Contract for Deed Price Premiums
Incorrect Department of Revenue cash equivalent adjustment procedures also may be a factor in explaining the difference in contract for deed price premiums.
In contrast, the cost for originating contract for deed sales can be quite minimal as many of the fees associated with securing a mortgage are not required.
The inherent flexibility of contract for deed terms can provide an attractive financing alternative to both buyers and sellers of forest land over more rigid financing terms associated with loans.
One possible explanation for the large difference between per-acre sale prices for non-contract for deed transactions and cash equivalent sale prices for contract for deed transactions could be that the calculations used by the DOR to adjust contract for deed sales are incorrect.
The use of contract for deed financing was found to be a significant and important explanatory variable in the model.
A slightly modified version of the model used in the study reported here was applied to the 387 SLC forest land sales to assess the extent to which the contract for deed financing premium changes when many important predictors of forest land sale prices are omitted.
The study found that forest land sold on a contract for deed commanded a premium over comparable properties not sold on a contract for deed in Minnesota during 1989-2005 that varied by parcel size and date of sale.
Because the cost to acquire these rights is based on a percentage of the land's appraised market value, understanding how contract for deed financing influences forest land markets would result in a more precise conservation easement payments.

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