Installment Contracts in Florida
An installment contract is a purchase agreement in which the buyer pays the price in periodic payments over time, with the seller retaining legal title until all payments are complete. In Florida real estate, these agreements provide an alternative to traditional mortgage financing but carry unique risks for both parties.
How It Works
- Buyer takes possession and makes periodic payments (monthly, quarterly)
- Seller retains legal title as security for payment
- Buyer holds equitable title and beneficial use during the payment period
- Seller delivers the deed upon receipt of the final payment
Buyer Risks
- No legal title until full payment; limited ability to sell or refinance
- Seller’s creditors, liens, or bankruptcy may affect the property
- Seller’s existing mortgage may contain a due-on-sale clause
- Default may result in forfeiture of all prior payments
Buyer Protections
- Record a memorandum of contract in the public records
- Require title insurance or a current title search
- Verify seller’s mortgage status and due-on-sale clause
- Establish escrow for payment processing
- Include deed delivery timeline after final payment
Related Terms
- Contract — Purchase agreement
- Deed — Title transfer instrument
- Seller Financing — Owner-financed transactions
- Title Insurance — Title protection
Barnes Walker Real Estate
Barnes Walker’s attorneys draft and review installment contracts for Florida real estate transactions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC