Agreement for Deed Help

[Eli Rose]

Is anyone in GA using a Contract for Deed as an exit strategy? If so, who does your closings? I've been referred to 3 closing attorneys by 3 different local wholesalers for assignments and double closings; however, none of the 3 attorneys will touch an Agreement for Deed (AKA: Contract for Deed, Land Contract or Installment Sale Agreement) with a 10' pole. I have found 2 other closing attorneys on my own and the result is the same. One went as far as to send me a lengthy PDF as to why.

[Richard Balsam]

I had an attorney year ago tell me "no" as well. He did mention that any dispute will go to court. Judges will not look upon the contract as a "standard" way to conduct business, and that the other party could have easily assumed that they purchased the property - and are entitled to the deed ( even though you have paperwork to prove your case). 

As real estate investors- we are all lead to believe that land contracts/agreement for deeds/ are a "tool" to use for our properties. The problem is- it helps sell courses and books - and is not state specific. Georgia is extremely pro landlord and bank. My attorney said I would be crazy to even attempt to withhold title when I could get it back with a foreclosure in 6-8 weeks anyway. If the other party disputes it- you are looking at a longer waiting period for your day in court. Then - if the contract is to be "interpreted" by the court (Magistrate court since title didn't officially pass and your clients are tenants at this point)- they would remand the case to Superior court for interpretation. Another month or two before it's heard - and many thousands of dollars later- you may still not win. My advise- attorneys know the law better than investors - heed their advise!