Agreement for Deed in Florida
An agreement for deed is a seller-financed real estate transaction in which the seller retains legal title while the buyer takes possession and makes installment payments toward the purchase price. Title passes to the buyer only upon full payment. This arrangement is an alternative to traditional mortgage financing.
How It Works
The seller and buyer execute a written agreement specifying the purchase price, payment schedule, interest rate, and conditions for title transfer. The buyer takes possession and typically assumes responsibility for taxes, insurance, and maintenance. The agreement is recorded in the county official records under Section 695.01(3), protecting the buyer's equitable interest from claims by the seller's creditors or subsequent purchasers.
Risks and Protections
Buyers face the risk that the seller could encumber the property or default on their own mortgage during the contract term. Florida law mitigates this risk by requiring recording and providing buyers with equitable rights. Florida courts may recharacterize an agreement for deed as an equitable mortgage, requiring the seller to follow judicial foreclosure procedures rather than simply declaring a forfeiture upon buyer default.
Related Terms
- Land Contract
- Mortgage
- Equitable Mortgage
Barnes Walker Real Estate
Barnes Walker drafts and reviews agreements for deed for buyers and sellers throughout Southwest Florida. Contact our real estate team for transaction guidance.
Florida Law Reference
Fla. Stat. Ch. 689
Governs the requirements for transferring real property in Florida, including deed execution, delivery, and recording.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC