Thinking About Buying a Home Through a Contract-for-Deed?

Learn Before You Sign

Buying a home is one of the biggest financial decisions you'll ever make. If you're considering purchasing a home through a Contract for Deed (also called an Installment Contract or Agreement for Deed), it's important to understand your rights,
responsibilities, and the potential risks before signing any paperwork. While a Contract for Deed can provide a path to homeownership for some families, it can also come with significant financial and legal risks if you don't fully understand the
agreement.

A little research today could save you thousands tomorrow.

Before You Buy: Ask These Questions

  • Has the home been professionally inspected?
  • Is the roof in good condition?
  • Does the furnace and air conditioner work?
  • Is there running water and working plumbing?
  • Is the electrical system safe and up to code?
  • Are there signs of mold, water damage, or foundation problems?
  • Who is responsible for repairs?
  • Who pays property taxes?
  • Who pays homeowner's insurance?
  • What happens if you miss a payment?
  • Can you receive a copy of the contract before signing?

Never Skip the Home Inspection

Some homes sold through Contract for Deed arrangements are sold "as-is." That means serious problems may become your responsibility after you sign.

Potential issues include:

  • No working heat or air conditioning
  • Plumbing leaks
  • Electrical hazards
  • Roof damage
  • Foundation problems
  • Mold or water damage
  • Pest infestations
  • Unsafe living conditions

Hiring a licensed home inspector before purchasing could save you thousands of dollars in unexpected repairs.

Protect Yourself

Read every page carefully

Take the contract home before signing.
Ask questions until you understand every term.
Hire a professional home inspector
Knowledge is one of the best investments you can make

United Way of Decatur & Mid Illinois Is Here to Help

At United Way of Decatur & Mid Illinois, we believe every family deserves access to reliable information that helps them make informed financial decisions. While we cannot provide legal advice or recommend whether you should enter into a Contract for Deed, we can connect you with trusted community resources that may help you better understand the homebuying process.

Our mission is to lead community transformation through effective, efficient, and integrated solutions that empower individuals and strengthen families.

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