Contract for Deed (Land Contract)

CONTRACT FOR DEED (AGREEMENT FOR DEED / INSTALLMENT LAND CONTRACT)

(Florida)

TABLE OF CONTENTS

1. Document Header and Parties
2. Definitions
3. Property; Legal Description
4. Purchase Price; Down Payment; Installment Terms
5. Interest; Amortization; Balloon; Prepayment
6. Legal Title; Escrow of Deed; Delivery at Payoff
7. Possession; Taxes, Insurance, and Maintenance
8. Buyer's Equitable Interest; Recording
9. Default and Remedies (Florida Equitable-Mortgage / Foreclosure Rule)
10. Title; Marketability; Title Insurance
11. Risk of Loss; Condemnation
12. Assignment; Due-on-Sale (Garn–St. Germain)
13. Disclosures (Lead-Based Paint; Property Condition)
14. General Provisions
15. Execution; Notarial Acknowledgment
16. Exhibits and Schedules

1. DOCUMENT HEADER AND PARTIES

This Contract for Deed (also known as an Agreement for Deed or Installment Land Contract, this "Contract") is made as of [__/__/____] (the "Effective Date") by and between:

a. Seller: [SELLER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [SELLER ADDRESS] ("Seller"); and

b. Buyer: [BUYER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [BUYER ADDRESS] ("Buyer").

Seller and Buyer are each a "Party" and collectively the "Parties."

Recitals

A. Seller is the fee simple owner of the real property described in Exhibit A (the "Property").

B. Buyer desires to purchase, and Seller desires to sell, the Property on an installment basis under which Seller retains legal title as security until the Purchase Price is paid in full, at which time Seller will convey title by deed.

C. The Parties acknowledge that under Fla. Stat. § 697.01 an instrument given to secure payment of money is deemed a mortgage, and that this Contract may be treated as an equitable mortgage subject to foreclosure under Fla. Stat. ch. 702.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

2. DEFINITIONS

"Business Day" – any day other than Saturday, Sunday, or a day on which Florida-chartered banks are authorized or required to close.

"Closing" / "Final Closing" – delivery of the Deed upon payment in full of all amounts due under this Contract.

"Deed" – a [SELECT: Statutory Warranty Deed / Special Warranty Deed] in recordable form conveying the Property to Buyer subject only to the Permitted Exceptions.

"Default Rate" – [____]% per annum or the maximum rate permitted by Fla. Stat. ch. 687, whichever is less.

"Equity" – the difference between the fair market value of the Property and the unpaid balance of the Purchase Price, plus the value of Buyer's improvements.

"Permitted Exceptions" – the matters listed in Exhibit B.

"Purchase Price" – the amount set forth in Section 4.1.

"Unpaid Balance" – the principal portion of the Purchase Price remaining unpaid at any time, together with accrued interest and other charges.

3. PROPERTY; LEGAL DESCRIPTION

3.1 Property. Seller agrees to sell and Buyer agrees to buy the real property located at [PROPERTY ADDRESS], [CITY], [COUNTY] County, Florida, legally described in Exhibit A, together with all improvements, fixtures, easements, and appurtenances.

3.2 Personal Property Included. The following personal property is included, free of liens: [LIST OR "None"].

3.3 Condition; "As-Is." Except as expressly stated herein and in the disclosures attached, Buyer accepts the Property in its present "AS-IS" condition, subject to Buyer's inspection rights in Section 13.

4. PURCHASE PRICE; DOWN PAYMENT; INSTALLMENT TERMS

4.1 Purchase Price. The total Purchase Price is $[____________].

4.2 Down Payment. Buyer shall pay a down payment of $[____________] on or before [__/__/____], receipt of which [SELECT: is / is not] acknowledged.

4.3 Financed Amount. The amount financed (Purchase Price less down payment) is $[____________] (the "Financed Amount").

4.4 Installment Payments. Buyer shall pay the Financed Amount, with interest, in installments as follows:

4.5 Application of Payments. Payments are applied first to late charges and costs, then to accrued interest, then to principal.

4.6 No Usury. No provision shall require interest exceeding the maximum permitted by Fla. Stat. ch. 687; any excess shall be applied to principal or refunded.

5. INTEREST; AMORTIZATION; BALLOON; PREPAYMENT

5.1 Interest. Interest accrues on the Unpaid Balance at the rate stated in Section 4.4 from the Effective Date.

5.2 Balloon Disclosure. [IF APPLICABLE] THIS CONTRACT CONTAINS A BALLOON PAYMENT. A SUBSTANTIAL FINAL PAYMENT OF $[__________] WILL BE DUE ON [__/__/____]. BUYER MAY NEED TO REFINANCE OR OBTAIN OTHER FUNDS TO PAY THE BALLOON.

5.3 Prepayment. Buyer may prepay all or part of the Unpaid Balance at any time [SELECT: without penalty / subject to a prepayment charge of [____]%]. Partial prepayments are applied to principal and do not postpone any scheduled payment.

5.4 Amortization Statement. Upon Buyer's written request (not more than [____] times per year), Seller shall provide a statement of the Unpaid Balance and amounts applied to principal and interest.

6. LEGAL TITLE; ESCROW OF DEED; DELIVERY AT PAYOFF

6.1 Retention of Legal Title. Seller retains legal title to the Property as security until Buyer has paid the Purchase Price and performed all obligations in full. Buyer holds equitable title and the right of possession.

6.2 Escrow of Deed (Optional). [SELECT ONE]
☐ Seller shall deposit an executed, recordable Deed with [ESCROW AGENT/TITLE COMPANY] to be held in escrow and delivered to Buyer upon payment in full.
☐ The Deed shall be delivered by Seller directly upon payment in full; no deed is escrowed.

6.3 Delivery at Payoff. Within [____] Business Days after Buyer pays all amounts due, Seller shall execute and deliver (or cause the escrow agent to deliver) the Deed and shall record a release/satisfaction of this Contract at [SELECT: Seller's / Buyer's] expense.

7. POSSESSION; TAXES, INSURANCE, AND MAINTENANCE

7.1 Possession. Buyer is entitled to possession on [__/__/____].

7.2 Taxes and Assessments. Buyer shall pay, before delinquency, all real property taxes and assessments accruing on or after the possession date, and shall provide Seller proof of payment upon request.

7.3 Insurance. Buyer shall keep the improvements insured against fire and other casualty for not less than [SELECT: replacement cost / the Unpaid Balance], naming Seller as an additional insured / loss payee as its interest appears, and shall furnish certificates to Seller.

7.4 Maintenance. Buyer shall maintain the Property in good repair, commit no waste, and comply with all laws and any community association requirements.

7.5 HOA / Community Association. [IF APPLICABLE] Buyer shall pay all association dues and assessments and comply with the governing documents. Seller has delivered the disclosures required by Fla. Stat. ch. 718/720.

8. BUYER'S EQUITABLE INTEREST; RECORDING

8.1 Recording. This Contract (or a Memorandum of Contract for Deed in the form of Exhibit C) shall be recorded in the Official Records of [COUNTY] County, Florida, pursuant to Fla. Stat. § 695.01, to provide constructive notice of Buyer's equitable interest. Recording an unrecorded contract leaves Buyer unprotected against subsequent purchasers and creditors of Seller.

8.2 Documentary Stamp Tax. Documentary stamp tax under Fla. Stat. ch. 201 is due on a contract/agreement for deed. The deed transfer tax (Fla. Stat. § 201.02, 70¢ per $100, except Miami-Dade) and note tax (§ 201.08, 35¢ per $100) apply as provided by law. [SELECT: Buyer / Seller] shall pay such taxes at recording.

8.3 No Encumbrance by Seller. Seller shall not further encumber or convey the Property in a manner impairing Buyer's interest, and shall apply Buyer's payments to keep any underlying mortgage current (see Section 12.3).

9. DEFAULT AND REMEDIES (FLORIDA EQUITABLE-MORTGAGE / FORECLOSURE RULE)

9.1 Events of Default. Buyer is in default if Buyer (a) fails to pay any installment within [____] days after its due date; (b) fails to pay taxes or insurance; (c) commits waste; or (d) breaches any other material covenant and fails to cure within [____] days after written notice.

9.2 Notice and Right to Cure. Seller shall give Buyer written notice of default specifying the default and a cure period of not less than [30] days. Buyer may cure by paying all past-due amounts plus late charges and Seller's reasonable costs.

9.3 FLORIDA REMEDY — FORECLOSURE REQUIRED WHERE BUYER HAS EQUITY. The Parties acknowledge that under Fla. Stat. § 697.01 and Florida case law (e.g., Mid-State Investment Corp. v. O'Steen, H & L Land Co. v. Warner), where Buyer has acquired Equity in the Property, this Contract is treated as an equitable mortgage, and Seller's remedy on default is judicial foreclosure under Fla. Stat. ch. 702, not summary forfeiture or eviction. In such foreclosure:
a. the Property is sold by the clerk of court and proceeds are applied to the debt, costs, and attorneys' fees, with any surplus paid to Buyer;
b. Buyer retains the equity of redemption until the certificate of sale is filed (Fla. Stat. § 45.0315); and
c. Seller may seek a deficiency judgment only as permitted by Fla. Stat. § 702.06, subject to homestead and other defenses.

9.4 Limited Forfeiture (Use With Caution). [OPTIONAL] If Buyer has paid less than [____]% of the Purchase Price and has minimal Equity, the Parties agree Seller may seek to enforce forfeiture of this Contract and recover possession; however, the Parties acknowledge a Florida court may nonetheless require foreclosure and may relieve against forfeiture.

9.5 Cumulative Remedies; Attorneys' Fees. Remedies are cumulative to the extent permitted by law. The prevailing Party in any action to enforce this Contract is entitled to reasonable attorneys' fees and costs.

10. TITLE; MARKETABILITY; TITLE INSURANCE

10.1 Marketable Title at Payoff. At Final Closing, Seller shall convey marketable, insurable fee simple title subject only to the Permitted Exceptions.

10.2 Title Insurance. [SELECT: Seller / Buyer] shall provide, at [ITS] expense, an owner's title insurance commitment from [TITLE COMPANY] showing title vested in Seller as of the Effective Date, and an owner's policy issued to Buyer at Final Closing.

10.3 Seller's Existing Liens. Seller represents the Property is encumbered only by: [LIST or "none"]. Seller shall not allow any superior lien to go into default.

11. RISK OF LOSS; CONDEMNATION

11.1 Risk of Loss. From the possession date, risk of loss passes to Buyer. In the event of casualty, insurance proceeds shall be applied, at Buyer's election and subject to Seller's security interest, to restoration or to the Unpaid Balance.

11.2 Condemnation. Any condemnation award shall be applied first to the Unpaid Balance, with the balance to Buyer, unless the Parties agree to restoration.

12. ASSIGNMENT; DUE-ON-SALE (GARN–ST. GERMAIN)

12.1 Assignment by Buyer. Buyer may not assign this Contract or its interest without Seller's prior written consent, which shall not be unreasonably withheld.

12.2 Assignment by Seller. Seller may assign its rights to payment subject to Buyer's rights hereunder.

12.3 Due-on-Sale Warning (Garn–St. Germain). If the Property is subject to an existing mortgage, entering into this Contract may trigger a "due-on-sale" clause permitting the lender to accelerate the underlying loan under the federal Garn–St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3). The Parties have considered this risk. Seller represents that [SELECT: there is no underlying mortgage / the underlying lender has consented / Buyer assumes this risk]. Seller shall apply Buyer's payments to keep any underlying mortgage current.

13. DISCLOSURES (LEAD-BASED PAINT; PROPERTY CONDITION)

13.1 Lead-Based Paint (Pre-1978 Housing). If the dwelling was built before 1978, federal law (42 U.S.C. § 4852d) requires Seller to disclose known lead-based paint and hazards, provide available records, deliver the EPA pamphlet "Protect Your Family From Lead in Your Home," and allow Buyer a 10-day inspection opportunity. See the Lead-Based Paint Disclosure in Exhibit D. ☐ Not applicable (built 1978 or later).

13.2 Property Condition Disclosure. Seller has delivered a written disclosure of known material defects affecting the Property as required by Florida law (Johnson v. Davis).

13.3 Radon Gas (Fla. Stat. § 404.056(5)). RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.

13.4 Inspection. Buyer [SELECT: has inspected / has [____] days to inspect] the Property and accepts it subject to such inspection.

14. GENERAL PROVISIONS

14.1 Governing Law. This Contract is governed by the laws of the State of Florida.

14.2 Forum. Exclusive venue lies in the state courts in [COUNTY] County, Florida.

14.3 Notices. Notices shall be in writing and delivered by hand, certified mail (return receipt requested), or nationally recognized overnight courier to the addresses in Section 1.

14.4 Time of the Essence. Time is of the essence as to all payment obligations, subject to the notice and cure rights and the Florida foreclosure rule in Section 9.

14.5 Entire Agreement; Amendment. This Contract and its Exhibits are the entire agreement and may be amended only in a writing signed by both Parties.

14.6 Severability. If any provision is held invalid, the remainder shall remain enforceable.

14.7 Counterparts; Electronic Signatures. This Contract may be executed in counterparts and by electronic signature.

14.8 Successors and Assigns. This Contract binds and benefits the Parties and their permitted successors and assigns.

15. EXECUTION; NOTARIAL ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date.

SELLER:
________________________________________
[SELLER NAME]
Date: [__/__/____]

Witness 1: _______________________ Print: _______________________
Witness 2: _______________________ Print: _______________________

BUYER:
________________________________________
[BUYER NAME]
Date: [__/__/____]

Witness 1: _______________________ Print: _______________________
Witness 2: _______________________ Print: _______________________

Notary Acknowledgment

STATE OF FLORIDA
COUNTY OF [____________]

The foregoing instrument was acknowledged before me by means of ☐ physical presence or ☐ online notarization, this [____] day of [MONTH], [YEAR], by [NAME], who is ☐ personally known to me or ☐ has produced ____________________ as identification.

________________________________________
Notary Public, State of Florida
Print Name: ______________________
My Commission Expires: ___________
[SEAL]

16. EXHIBITS AND SCHEDULES

• Exhibit A – Legal Description of the Property
• Exhibit B – Permitted Exceptions
• Exhibit C – Memorandum of Contract for Deed (for recording)
• Exhibit D – Lead-Based Paint Disclosure (pre-1978 housing)
• Exhibit E – Seller's Property Condition Disclosure
• Schedule 1 – Amortization Schedule

Sources and References

• Fla. Stat. § 697.01 — https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0697/Sections/0697.01.html
• Fla. Stat. ch. 702 (Foreclosure) — https://www.flsenate.gov/Laws/Statutes/2024/Chapter702/All
• Fla. Stat. § 695.01 (Recording) — https://www.flsenate.gov/Laws/Statutes/2024/Chapter695/All
• Fla. Stat. ch. 201 (Documentary Stamp Tax); Fla. Dept. of Revenue Doc Stamp guidance — https://floridarevenue.com/taxes/taxesfees/Pages/doc_stamp.aspx
• Garn–St. Germain Act, 12 U.S.C. § 1701j-3 — https://www.law.cornell.edu/uscode/text/12/1701j-3
• Lead-Based Paint, 42 U.S.C. § 4852d — https://www.law.cornell.edu/uscode/text/42/4852d