After Seeing Controversial Contract-for-Deed Home Sales Affect Constituents, Minnesota Lawmakers Propose Reforms

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The excitement that Abdinoor Igal felt after buying a five-bedroom house in a new development in a suburb south of the Twin Cities was short-lived.

At the time, it was the realization of a long-held dream — a spacious, modern home for his wife and seven children to call their own. And Igal, a 37-year-old long-haul trucker, had saved for a house for years.

But like many practicing Muslims, he had avoided paying or profiting from interest as a matter of faith, and therefore did not want to get a traditional mortgage. So in 2022, when he heard there was a new, interest-free way to buy a house using a financial instrument called a contract for deed, he jumped at the chance.

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