Bond for Deed for a Condo

2 Replies

Hello BP,

If you were to offer to do Bond for Deed financing for a buyer, how would you work the condo dues in there? What I mean is, should I continue to pay the dues and add the amount on top of their monthly note or will the intermediary take care of charging the new buyer for the condo dues and make sure that they are paid? What I don't want is a situation where we sign everything and this buyer decides not to pay the condo fees for whatever reason. Since it is a bond for deed, the new "owner" would not be the one penalized by the association. I would since I still am the owner on title. Should I not even offer Bond for deed for this condo? The one aspect that is attractive about it is that he is able to put down a 20-30% down payment and it is not the best area for a traditional retail sale. Any thoughts would be appreciated.

30% down is very strong.  20% down is strong.  10% down is average.  Condo association dues, taxes, etc should be included in the contract, with non payment a default provision.

As you mention, you still maintain some liability, but you must weigh all the alternatives as well as your personal comfort level.

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