Contract for Deed (Land Contract) - Vermont
CONTRACT FOR DEED (INSTALLMENT LAND CONTRACT)
(Vermont)
TABLE OF CONTENTS
- Document Header and Parties
- Definitions
- Property; Legal Description
- Purchase Price; Down Payment; Installment Terms
- Interest; Amortization; Balloon; Prepayment
- Legal Title; Escrow of Deed; Delivery at Payoff
- Possession; Taxes, Insurance, and Maintenance
- Buyer's Equitable Interest; Recording
- Default and Remedies (Vermont Foreclosure / Strict Foreclosure Rule)
- Title; Marketability; Title Insurance
- Risk of Loss; Condemnation
- Assignment; Due-on-Sale (Garn–St. Germain)
- Disclosures (Lead-Based Paint; Property Condition)
- General Provisions
- Execution; Notarial Acknowledgment
- Exhibits and Schedules
1. DOCUMENT HEADER AND PARTIES
This Contract for Deed (also known as an 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 a Vermont contract for deed under which purchase payments accrue to Buyer's interest is treated as an equitable mortgage requiring foreclosure to extinguish that interest (see Section 9).
NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the Parties agree as follows:
2. DEFINITIONS
"Business Day" – any day other than Saturday, Sunday, or a legal holiday in Vermont.
"Closing" / "Final Closing" – delivery of the Deed upon payment in full of all amounts due under this Contract.
"Deed" – a [SELECT: Warranty Deed / Special (Limited) 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 Vermont law, whichever is less.
"Buyer's Interest" – Buyer's equitable interest arising from payments applied to the purchase obligation under this Contract.
"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], [TOWN/CITY], [COUNTY] County, Vermont, 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 [__/__/____].
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:
| Term | Detail |
|---|---|
| Payment amount | $[__________] per [month] |
| Number of payments | [____] |
| First payment due | [__/__/____] |
| Payment due day | [____] day of each [month] |
| Interest rate | [____]% per annum |
| Amortization period | [____] years/months |
| Balloon payment (if any) | $[__________] due [__/__/____] |
| Maturity date | [__/__/____] |
| Late charge | [____]% of payment / $[____] after [____]-day grace period |
| Place of payment | [ADDRESS / ESCROW AGENT] |
4.5 Application of Payments. Payments are applied first to late charges and costs, then to accrued interest, then to principal.
4.6 Maximum Lawful Rate. No provision shall require interest exceeding the maximum permitted by Vermont law (9 V.S.A. § 41a). Any unlawful interest or charge shall be handled as required by applicable law.
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.
5.4 Payoff Statement. Upon Buyer's written request, 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 (Recommended). [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 the Deed and record a release 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.
7.4 Maintenance. Buyer shall maintain the Property in good repair, commit no waste, and comply with all laws and any association requirements.
8. BUYER'S EQUITABLE INTEREST; RECORDING
8.1 Recording. The parties shall consult Vermont title counsel and the Town Clerk of [TOWN] about recording this Contract or an appropriate notice or memorandum. Sections 341 and 342 of title 27 govern execution, acknowledgment, recording, and third-party effect of deeds and other covered conveyances. Section 348 validates specified defective recorded instruments after the statutory period; it does not create a notice-of-contract form.
8.2 Recording Fees / Property Transfer Tax. Recording fees and any Vermont property transfer tax (32 V.S.A. § 9602) shall be paid by [SELECT: Buyer / Seller].
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 loan current (see Section 12.3).
9. DEFAULT AND REMEDIES (VERMONT FORECLOSURE / STRICT 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 by certified mail, return receipt requested, specifying the default and a cure period of [____] days, subject to any longer period required by applicable law. Buyer may cure by paying all past-due amounts plus lawful late charges and Seller's reasonable costs.
9.3 VERMONT REMEDY — FORECLOSURE WHERE BUYER HAS EQUITY. The Parties acknowledge:
a. Vermont treats a qualifying contract for deed as an equitable mortgage. Seller must pursue foreclosure to extinguish Buyer's Interest; a declaration of forfeiture or a rent-based eviction does not accomplish that result. Prue v. Royer, 2013 VT 12, ¶ 29.
b. STRICT FORECLOSURE (12 V.S.A. § 4941). In an action for foreclosure, the court may issue a decree foreclosing the equity of redemption without a judicial sale only on a finding that there is no substantial value in the Property in excess of the debt (plus other liens and unpaid taxes); the court must include a summary of the evidence supporting that finding. If a decree of strict foreclosure issues, the redemption period is six (6) months from the decree unless the court orders a shorter time or the Parties agree to a shorter period.
c. JUDICIAL SALE. Any party may request, or the court may order, a judicial foreclosure sale. The court's confirmation order allocates sale proceeds first to sale expenses, then the plaintiff, then other lienholders in lien priority, and finally any remaining excess to Buyer (12 V.S.A. §§ 4945, 4954(c)).
d. DWELLING HOUSE / FARMLAND. The nonjudicial power-of-sale process is unavailable for farmland or a dwelling house owned by a natural person; owner occupancy is not required for this exclusion (12 V.S.A. § 4961).
e. Recording After Redemption. After the redemption period expires without redemption, Seller must record a certified copy of the judgment and the certificate of nonredemption in the land records (12 V.S.A. § 4941(g)).
9.4 No Automatic Forfeiture. Default alone does not cancel Buyer's Interest or transfer possession to Seller. Any termination of that interest must follow the applicable foreclosure process or a later voluntary, signed resolution of the Parties.
9.5 Costs and Attorneys' Fees. A Party may request reasonable attorneys' fees and costs in an enforcement action to the extent permitted by law and awarded by the court.
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. 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 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 under the federal Garn–St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3), subject to its exceptions and the loan terms. Seller represents that [SELECT: there is no underlying loan / the lender has consented / Buyer assumes this risk]. Seller shall apply Buyer's payments to keep any underlying loan current.
13. DISCLOSURES (LEAD-BASED PAINT; PROPERTY CONDITION)
13.1 Lead-Based Paint. If the Property is covered target housing, complete Exhibit D and deliver the pamphlet, known-hazard disclosures, and available reports before Buyer becomes obligated. Allow Buyer ten days for an inspection or risk assessment unless the Parties mutually agree to a different period. ☐ Not applicable (record the coverage or exemption basis: [________________]).
13.2 Property Condition Disclosure. Seller has delivered a Seller's Property Information Report / disclosure describing known material defects [SELECT: per customary Vermont practice / per the parties' agreement].
13.3 Inspection. Buyer [SELECT: has inspected / has [____] days to inspect] the Property, including any water-supply/wastewater (well/septic) and radon testing, 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 Vermont.
14.2 Forum. Any action under this Contract shall be brought in the Vermont Superior Court, [COUNTY] Unit, to the extent permitted by applicable venue rules.
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 Vermont 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. The Parties may use electronic signatures only after confirming that the chosen method meets the law applicable to this instrument and any intended recording.
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: [__/__/____]
BUYER:
________________________________________
[BUYER NAME]
Date: [__/__/____]
Notary Acknowledgment
STATE OF VERMONT
COUNTY OF [____________]
On this [____] day of [MONTH], [YEAR], personally appeared [NAME(S)], and acknowledged this instrument, by [him/her/them] sealed and subscribed, to be [his/her/their] free act and deed.
Before me,
________________________________________
Notary Public, State of Vermont
My Commission Expires: ___________
[SEAL]
16. EXHIBITS AND SCHEDULES
- Exhibit A – Legal Description of the Property
- Exhibit B – Permitted Exceptions
- Exhibit C – Notice / Memorandum of Contract for Sale of Real Estate, if prepared and accepted for recording
- Exhibit D – Lead-Based Paint Disclosure (if target housing)
- Exhibit E – Seller's Property Information Report / Disclosure
- Schedule 1 – Amortization Schedule
EXHIBIT D — LEAD-BASED PAINT DISCLOSURE
Complete and attach this separate sheet before Buyer becomes obligated if the Property is covered target housing. Print the Lead Warning Statement in large type. Attach all available lead-hazard evaluation reports and give Buyer the EPA lead hazard information pamphlet.
Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.
Seller's disclosure: ☐ Seller knows of lead-based paint or lead-based paint hazards; describe the basis for knowledge, location, and painted-surface condition: [________________________________]. ☐ Seller has no knowledge of lead-based paint or lead-based paint hazards.
Available reports: ☐ Seller has provided all available lead-hazard evaluation reports, listed here: [LIST/ATTACH]. ☐ Seller has no such reports available.
Buyer's acknowledgments: By signing below, Buyer confirms receipt of Seller's disclosure and the listed records or reports, has read and understands the Lead Warning Statement above, and received the EPA lead hazard information pamphlet on [__/__/____]. Before becoming obligated, Buyer ☐ received a ten-day opportunity to conduct a risk assessment or inspection; ☐ received a different period mutually agreed in writing with Seller: [____] days; or ☐ waives that opportunity in writing.
Seller signature: ______________________________ Date: [__/__/____]
Buyer signature: ______________________________ Date: [__/__/____]
Agent, if any: I informed Seller of Seller's obligations under 42 U.S.C. § 4852d and am aware of my duty to ensure compliance with the federal lead-disclosure requirements. Agent signature: ______________________________ Date: [__/__/____]
Sources and References
- 27 V.S.A. §§ 341–342 (deed execution, acknowledgment, recording, and effect) — https://legislature.vermont.gov/statutes/fullchapter/27/005
- 12 V.S.A. § 4941 (strict foreclosure; six-month redemption) — https://legislature.vermont.gov/statutes/section/12/172/04941
- 12 V.S.A. § 4961 (nonjudicial-sale exclusion for farmland and a dwelling house owned by a natural person) — https://legislature.vermont.gov/statutes/fullchapter/12/172
- 9 V.S.A. § 2453 (consumer protection applies to real estate transactions) — https://legislature.vermont.gov/statutes/fullchapter/09/063
- Garn–St. Germain Act, 12 U.S.C. § 1701j-3 — https://www.govinfo.gov/app/details/USCODE-2024-title12/USCODE-2024-title12-chap13-sec1701j-3
- Lead-Based Paint, 42 U.S.C. § 4852d — https://www.govinfo.gov/app/details/USCODE-2024-title42/USCODE-2024-title42-chap63A-subchapI-sec4852d
- Prue v. Royer, 2013 VT 12 — https://www.vtcourts.gov/sites/default/files/documents/Prue.pdf
About this template
- Last updated
- October 20, 2026
- Jurisdiction
- Vermont
- Category
- Real Estate
Legal authority
- 27 V.S.A. § 341 (execution, acknowledgment, and recording of deeds and other conveyances)
- 27 V.S.A. § 342 (effect of an unrecorded conveyance)
- 27 V.S.A. § 348 (validation of specified defective recorded instruments)
- 12 V.S.A. § 4941 (strict foreclosure)
- 12 V.S.A. § 4945 (judicial foreclosure sale)
- 12 V.S.A. § 4954 (judicial-sale proceeds)
- 12 V.S.A. § 4961 (nonjudicial sale exclusion for farmland and a dwelling house owned by a natural person)
- 9 V.S.A. § 41a (interest-rate rules)
- 9 V.S.A. § 2453 (consumer protection in real estate transactions)
- 32 V.S.A. § 9602 (tax on transfer of title by deed)
- Prue v. Royer, 2013 VT 12, 193 Vt. 267, 67 A.3d 895 (contract for deed as equitable mortgage)
- 12 U.S.C. § 1701j-3 (Garn–St. Germain due-on-sale clauses)
- 42 U.S.C. § 4852d (Residential Lead-Based Paint Hazard Reduction Act)
- 40 C.F.R. § 745.113(a) (target-housing sale attachment)
Real estate documents transfer ownership, define who can use a property, and record agreements between buyers, sellers, landlords, and tenants. Deeds, purchase agreements, leases, and easements have to be drafted to meet state recording requirements, and mistakes show up at closing or years later in title disputes. Good real estate paperwork moves transactions forward quickly and avoids the kind of problems that only surface when it is time to sell or refinance.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
The statutes this template relies on are listed under Legal authority.
27 V.S.A. § 341(a) (checked October 6, 2026): "Deeds and other conveyances of lands, or of an estate or interest in land, shall be signed by the party granting the same and acknowledged by the grantor before a notary public and recorded at length in the clerk’s office of the town in which the lands lie."
27 V.S.A. § 342 (checked October 6, 2026): "A deed of bargain and sale, a mortgage or other conveyance of land in fee simple or for term of life, or a lease for more than one year from the making thereof shall not be effectual to hold such lands against any person but the grantor and his or her heirs, unless the deed or other conveyance is acknowledged and recorded."
27 V.S.A. § 348(a) (checked October 6, 2026): "When an instrument of writing shall have been on record in the office of the clerk in the proper town for a period of 15 years, and there is a defect in the instrument because it omitted to state any consideration or was not sealed, witnessed, acknowledged, validly acknowledged, or because a license to sell was not issued or is defective, the instrument shall, from and after the expiration of 15 years from the filing thereof for record, be valid."
42 U.S.C. § 4852d(a)(1) (checked September 5, 2026): "Not later than 2 years after October 28, 1992, the Secretary and the Administrator of the Environmental Protection Agency shall promulgate regulations under this section for the disclosure of lead-based paint hazards in target housing which is offered for sale or lease."
Draft your Contract for Deed (Land Contract) in the editor
Answer a few questions, let the AI editor draft each section from your answers, review it, and download Word and PDF. $99 one time, or $249 per month for every document and every Ezel app.