Contracts for Deed

Contracts for Deed, which are also called Executory Contracts, involve a person contracting for the right to receive title to property upon the completion of payments to the owner of the property.  Executory Contracts are specifically covered by statute (Texas Property Code 5.061 et seq) and there are a number of rules that must be followed when a real property transaction is handled by Executory Contract.  Because Executory Contracts do not involve the actual conveyance of title, title insurance is not available at the time an Executory Contract is executed.  Title insurance is available at the time the conveyance of title is finalized, such as when the final payment requirements under the Executory Contract are completed.