Articles of Agreement

In depth

Articles of agreement is the historic name for a contract for deed, still used in Illinois real estate practice. The articles set out the purchase price, payment terms, default remedies, and the seller's duty to deliver a warranty deed at the end of payments. Misconception: the term sounds like a corporate document, leading some buyers to underestimate that this is a real estate purchase contract. Practically, articles of agreement function identically to a contract for deed: the buyer holds equitable title and the seller retains legal title. Illinois courts have developed substantial case law treating these instruments as mortgages in equity, which can require foreclosure-like procedures rather than simple forfeiture. Always consult state-specific counsel and record either the full document or a memorandum.