Legal Question in Real Estate Law in Oregon

carrying title

What does it mean when a person carries a contract for a real estate loan

Asked on 6/02/04, 10:43 pm

1 Answer from Attorneys

Susan Burns Law Office of Susan Ford Burns

Re: carrying title

Carrying a contract means that the seller of the property retains what is called "legal" title in the property and the buyer obtains an "equitable" interest in the property.

In Oregon it is the most common method of seller financing of a property sale.

When a contract is used, and the buyer does not make his or her payments, the seller can quickly (60-120 days) take the property back using a non-judicial method called forfeiture and remove the buyer. This is in contrast to a note and trust deed, which take 120 days to foreclose non-judicially.

A person has to be in title on the property in order to be able to carry a contract. If someone does not own the property, but makes a loan against it (either an individual or an institution like a bank or mortgage company) they will usually use a note and trust deed, they cannot use a land sale contract.

If you are contemplating buying or selling using owner financing, you should contact an attorney for assistance in the transaction. These transactions are more complicated than a typical purchase or sale and you want to be sure that you are protected. Our office regularly represents buyers and sellers in these transactions and would be happy to help you with them.

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Answered on 6/03/04, 11:31 am

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