Cancellation of Contract for Deed in Florida: What You Need to Know

A contract for deed, also known as a land contract, installment contract, or agreement for deed, is an agreement between a seller and a buyer where the buyer makes payments to the seller until the purchase price is paid in full. The seller holds the legal title to the property until the buyer has fully paid for it.

However, there are situations where either the buyer or seller may want to cancel the contract for deed. In Florida, there are specific legal requirements that must be met in order to cancel a contract for deed.

Grounds for Cancellation of Contract for Deed in Florida

If you are the seller, you may want to cancel the contract for deed if the buyer has breached the terms of the agreement, such as failing to make payments as agreed or violating any other terms of the contract. Additionally, the seller may cancel the contract for deed if the buyer has filed for bankruptcy, as this could affect their ability to pay for the property.

On the other hand, if you are the buyer, you may want to cancel the contract for deed if the seller has breached the agreement by failing to provide clear title to the property, failing to disclose any known defects or liens, or failing to maintain the property as agreed upon in the contract.

Steps to Cancel a Contract for Deed in Florida

Regardless of who initiates the cancellation of the contract for deed, there are specific legal steps that must be taken in Florida. These include:

1. Reviewing the contract for deed: The first step is to carefully review the contract for deed to determine what steps need to be taken in order to cancel the agreement.

2. Providing notice: If you are the party initiating the cancellation, you must provide written notice to the other party stating the reasons for the cancellation and the effective date of the cancellation.

3. Recording the cancellation: The cancellation of the contract for deed must be recorded in the public records of the county where the property is located. This is done by a quitclaim deed.

4. Returning payments: If the buyer has made any payments towards the purchase price, the seller must return these payments within 60 days of the cancellation.

5. Obtaining legal advice: Cancellation of a contract for deed can be a complex legal process. It is recommended to seek the advice of an experienced real estate attorney to ensure that all legal requirements are met.

In conclusion, cancellation of a contract for deed can be a complicated legal process, but it is possible if the proper steps are taken. Whether you are a buyer or a seller, it is essential to understand the legal requirements for cancellation in Florida and seek legal advice if necessary.