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prussell2 · May 26, 2010, 02:26 PM

Property is located in hamilton county and the state of Ohio. The seller and the buyer have come to an agreement for a contract for deed. Seller and buyer know each other.1). Can the seller and the buyer agree that there will not be any interest on the mortgage. The title for the property is clear and free of any leins and will remain in the sellers name until purchase price has been paid in full. The areement has been notorized. 2). Does it need to be recorded at the county recorders office.

ballengerb1 · May 26, 2010, 02:36 PM

Yep if you want it to be legal and have the correct party billed for the taxes. Until its recorded it has really has not happened. For example if you buy my car and I don't give you the title, who really owns the car, me.

twinkiedooter · May 26, 2010, 06:15 PM

All good land contracts like that should be recorded both for your protection and the seller's protection. It's a very good idea to have this recorded as soon as possible.

Fr_Chuck · May 26, 2010, 07:50 PM

Sorry to disagree but no, there is no requirement for the contract to be recorded. Since it is not a deed transfer it also does not effect who pays the taxes normally. The contract can state who has to pay the taxes but normally the "buyer" merely pays the owner that amount to be paid.

The seller has no need from his side, the only reason to record a deed is for the protection of the buyer, this wlll stop the seller ( owner) normally from getting any new or additional loans on the property.

*** I buy and sell on contracts all the time and have for 20 plus years

ballengerb1 · May 27, 2010, 08:19 AM

I thought this was a deed "for a contract for deed"

LisaB4657 · May 27, 2010, 08:24 AM

If you are the buyer then you want to have the contract recorded. That way the seller will not be able to sell the property out from under you or put mortgages on it.

If you are the seller then you don't want to have the contract recorded. It will act as an encumbrance on the property. If the buyers default it will be difficult to get the recorded contract discharged and clear the title.

As for the issue of no interest, the buyer and seller can make any agreement that they want. There is no legal requirement that there must be interest charged. However there may be some tax consequences for the seller. If you are the seller then you should speak to an accountant.