Contract for Deed Mn Form

A contract for deed is a popular method of financing a real estate transaction in Minnesota. This legal document is often used when a buyer cannot obtain traditional financing from a bank or mortgage lender. In this article, we will explore the basics of the contract for deed MN form and provide some tips for both buyers and sellers.

What is a Contract for Deed?

A contract for deed, also known as a land contract or installment contract, is a legal agreement between a buyer and seller of real estate. In this type of transaction, the seller agrees to finance the purchase of the property by accepting payments from the buyer over time. The buyer takes possession of the property but does not receive the deed until all payments are made.

In Minnesota, a contract for deed must be in writing and signed by both parties. It should include the terms of the sale, such as the purchase price, down payment, interest rate, payment schedule, and any conditions or contingencies. The document should also specify who is responsible for property taxes, insurance, and maintenance during the term of the agreement.

Advantages of a Contract for Deed

For buyers, a contract for deed can offer several advantages over traditional financing. It may be easier to qualify for, as the seller can set their own criteria for creditworthiness. The down payment and interest rate are also negotiable, which can make the purchase more affordable. Additionally, the buyer can take possession of the property immediately, without having to wait for bank approval.

For sellers, a contract for deed can be a way to sell a property quickly and generate income from the sale. It can also be a way to earn a higher rate of return than other investments, as the interest rate on a contract for deed is typically higher than what is available from a bank. Additionally, the seller retains legal ownership of the property until all payments are made, which provides some security in case of default.

Tips for Buyers and Sellers

If you are considering a contract for deed in Minnesota, there are some things to keep in mind. For buyers, it is important to ensure that the seller has legal ownership of the property and that there are no existing liens or mortgages. It is also a good idea to have an attorney review the contract for deed before signing, to ensure that the terms are fair and reasonable.

For sellers, it is important to disclose any known defects or issues with the property, such as environmental hazards or zoning violations. It is also important to specify in the contract for deed what will happen in case of default, such as repossession of the property and forfeiture of payments made.


A contract for deed can be a useful tool for financing a real estate transaction in Minnesota, but it is important to understand the legal and financial implications before entering into such an agreement. By following these tips and working with an experienced attorney, both buyers and sellers can protect their interests and achieve a successful outcome.