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Colorado Land Contract vs Contract for Deed

This article outlines the Colorado Land Contract vs Contract for Deed.

In Colorado, a land contract, installment land contract and contract for deed are the same thing under different names.  It is a sale of property by which the buyer pays the seller principal, interest, taxes and insurance, and the seller continues making payments on his underlying loan.  The payments from the buyer “wrap around” the underlying loan, hence the expression “wrap”.  The title (deed) to the property stays in the seller’s name for collateral, much the way a car loan is done.  When the buyer pays off the balance of the contract, the seller delivers a deed (title) to the property.  Typically, the deed is executed up front, held in escrow by an attorney or title company to ensure the deal will go smoothly when the buyer is ready to pay the balance of the contract.

In Colorado, the Law Firm of Bronchick & Associates, PC handles these escrows and can help you understand the Colorado Land Contract vs. Contract for Deed – call us at 303-398-7032 for more information.

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