CFPB Says Contracts for Deed Must Comply With TILA

August 15, 2024

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion affirming that federal home lending rules and laws under the Truth in Lending Act (TILA) cover contracts for deed and provide key consumer protections. In its research report, the CFPB includes a note highlighting the importance of title insurance. The report note says, “Title problems are extremely common in land contract transactions. ... A simple warranty of title from the seller does not provide the buyer with the same protections that they would have under a traditional mortgage, where the lender would require the buyer to purchase title insurance."

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