Installment Land Contracts Under Florida Law
Installment land contracts are legal and enforceable in Florida, though the state lacks a comprehensive installment contract statute. These agreements are governed by general contract law, the Statute of Frauds, recording statutes, and equitable case law principles, making careful drafting and legal guidance essential.
Applicable Florida Laws
- Statute of Frauds (Section 689.01): Contract must be in writing
- Recording statutes: Recording a memorandum provides constructive notice
- Usury laws: Interest rate capped at 18% for non-exempt loans under $500,000
- Homestead (Article X, Section 4): Spousal consent required for homestead property
- Due-on-sale clauses: Seller’s existing mortgage may be triggered
- Equitable foreclosure: Courts may prevent strict forfeiture
Why Recording Matters
Recording a memorandum of the contract protects the buyer against:
- Seller conveying the property to a third party
- Judgment liens filed against the seller after recording
- Seller’s bankruptcy trustee avoiding the buyer’s interest
- Creditor claims that would otherwise take priority
Drafting Essentials
- Complete legal description of the property
- Purchase price, payment schedule, and interest rate
- Allocation of property taxes, insurance, and maintenance
- Default and cure provisions (avoiding unconscionable forfeiture)
- Deed delivery timeline and requirements
- Recording obligations
Related Terms
- Installment Land Contract — Structure and mechanics
- Seller Financing — Owner-financed sales
- Deed — Title transfer
- Mortgage — Alternative financing structure
Barnes Walker Real Estate Law
Barnes Walker’s attorneys draft and litigate installment land contracts in compliance with Florida law throughout Manatee and Sarasota counties. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC