Bond for Deed in Florida
A bond for deed (contract for deed) is a seller-financed arrangement where the seller retains legal title until the buyer completes all installment payments, at which point the seller delivers a deed transferring ownership.
Structure
The buyer takes possession and makes regular payments to the seller over the contract term (often 5-15 years). The seller retains the deed as security. The buyer bears responsibility for property taxes, insurance, and maintenance during the contract period. Upon full payment, the seller delivers a warranty deed transferring clear title.
Equitable Mortgage Doctrine
Florida courts may recharacterize a bond for deed as an equitable mortgage, particularly when the buyer has built significant equity through payments and improvements. This recharacterization requires the seller to pursue judicial foreclosure rather than simply terminating the contract and retaining the property, protecting the buyer's equity investment.
Related Terms
Barnes Walker Real Estate
Barnes Walker structures and reviews seller-financed transactions throughout Southwest Florida. Contact us for 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