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A Florida Real Estate Contract must be in writing and contain the following, in order to be legally binding; The parties to the contract ? Buyers and Sellers identification. Identification of the Real Property by means of a legal description and street address.
Con: It takes time It can lead to delays as well as confusion. Legal terms may not be clearly understood by both parties. A written contract takes more time and sometimes limits flexibility, but it also makes agreements easier to enforce.
You can find the legal description on the title or deed, or you can obtain it from the property tax office. Include each party's full legal name and contact information. Specify the state laws that apply if the buyer and seller live in different jurisdictions. Outline a payment schedule and how payments are to be made.
A major drawback of a contract for deed for buyers is that the seller retains the legal title to the property until the payment plan is completed. On one hand, this means that they're responsible for things like property taxes. On the other hand, the buyer lacks security and rights to their home.
Since an agreement for deed is an agreement that the seller makes to the buyer to transfer the property once a specified amount of money has been received, it is considered a mortgage under Florida Law.