How is capital gains tax handled when the contract for deed is fulfilled?
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what are the disadvantages of a contract for deed Informational
- How can a buyer verify the seller's ownership and clear title? What title search and insurance options are available for properties under a contract for deed?
- How can the buyer verify the seller's legal capacity? What are the risks of the buyer not having the legal capacity to enter into a contract (e.g., if they are a minor)?
- What legal remedies are available to the buyer if such misrepresentations are discovered?
- Do contracts for deed contribute to or alleviate housing affordability issues? What are the potential for abuse or exploitation in the use of contracts for deed?
- Can the buyer lose their investment if the seller defaults on their own mortgage? What due diligence should a buyer perform before entering into a contract for deed?
- What are the risks of the seller threatening the buyer with eviction for minor or unsubstantiated reasons?
- What are the risks of the buyer not understanding their obligations regarding zoning laws and building codes?
- What legal action can a buyer take if the seller refuses to transfer the title? What are the risks of the buyer damaging the property beyond normal wear and tear?
- What are the potential benefits of promoting financial literacy and homeownership counseling?
- How might the terms of the contract for deed affect the refinance process?
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