Land Contract

# – A – B – C – D – E – F – G – H – I – J – K – L – M – N – O – P – Q – R – S – T – U – V – W – X – Y – Z

Land Contract Information

A land contract serves as an alternative form of seller financing, often used when buyers cannot qualify for traditional mortgage loans. The buyer takes possession and assumes most responsibilities of ownership—such as maintenance, taxes, and insurance—while the seller holds the title as security until the contract is paid in full.
Once the buyer completes all payment terms, the seller transfers the deed, granting full ownership. Land contracts can benefit both parties: buyers gain access to property without conventional financing, and sellers can earn interest on the balance owed. However, failure to make timely payments may lead to contract forfeiture and loss of the property.

Florida Legal Definition

Under **Florida law**, a land contract—also referred to as a **contract for deed**—is recognized as a legal instrument for transferring real estate ownership through installment payments. Governed by general contract principles under **Chapter 672, Florida Statutes**, and real property law under **Chapter 689**, the agreement must clearly define payment terms, responsibilities, and the timeline for deed conveyance.
Florida courts treat land contracts as equitable mortgages in some cases, particularly when the buyer has substantially performed under the contract. This means buyers may be entitled to foreclosure protections rather than simple forfeiture, depending on the circumstances and the agreement’s structure.

How It’s Used in Practice

In practice, land contracts are common in private sales, rural property transactions, or cases where traditional mortgage financing is unavailable.

• The buyer occupies the property and makes regular installment payments directly to the seller.
• The seller retains legal title until the buyer fulfills all payment obligations.
• Contracts often include clauses addressing default, interest rates, taxes, and maintenance duties.
• Attorneys or title professionals typically draft and record the agreement to protect both parties’ interests.

Key Takeaways

• A land contract allows buyers to purchase property through direct financing from the seller.
• The seller retains legal title until full payment is made, at which point the deed is transferred to the buyer.
• In Florida, land contracts are governed by contract and property law, and may be treated as equitable mortgages in some cases.
• These agreements can help buyers who cannot secure traditional loans but carry higher default risks.
• Both parties should document and record the contract to ensure legal protection and clarity.

Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron & Shea, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.

Visit our legal department pages:
Real Estate Attorneys 
Business Attorneys
Litigation Attorneys
Estate Planning Attorneys
Inheritance Attorney
Probate & Trusts

Contact Information:

Tel: 941-867-7818

Email: info@barneswalker.com

LinkedIn | Facebook | Instagram | YouTube | Reddit | X/Twitter