After you and the seller sign the contract for deed in front of a notary, the seller must give you a copy of it with original signatures. You need this to "record" the contract for deed with the county. This means the county has the information on file.
IT IS VERY IMPORTANT that you record the contract for deed at the county recorder’s office. This lets others know you are interested in the property. It is your responsibility to do this, not the seller’s. Call the county and ask for more information about recording property records.
If the seller has to pay a mortgage on the property, or taxes, or insurance, you should check on it now and then to make sure they are paying.
Some “scam” sellers will keep a buyer’s payments and not pay the mortgage. If the seller does not pay the mortgage and the home is foreclosed, you will lose the house and all the money you paid.
Check the county recorder’s office for information on the mortgage company or companies. Try to get written permission from the seller so that you can contact the mortgage company to keep track of payments.
But you should also ask the seller to show you a recent mortgage statement. Ask for copies of statements at least once every few months OR add it into your contract that the seller has to give you monthly statements. If you can't get this information, the Rent to Own or contract for deed deal is even more dangerous.
If you miss a payment, make sure the seller follows state law.
The seller must serve you with a notice of cancellation of your contract for deed to end the deal. If you get this notice, you have the right to pay the amount of money needed to catch up, plus additional costs. The notice should list the additional costs for you. If you get the notice, you can’t also be sued by the seller for payments you missed. If the seller tries to evict you without going through the cancellation process, call a lawyer right away.
Do not agree to sign a deed back to the seller at the same time you sign the contract. Do not agree to sign a deed back to the seller at any time. Some sellers ask buyers to sign deeds so they can avoid the legal cancellation process. A deed to the seller does not help you in any way.