Real Estate Land Contract in Key West

A land contract is a common form of seller financing. The buyer pays the seller a down payment and agrees to make payments of interest and principal on the outstanding balance. In other words, the seller acts as a lending institution. Typically in key West, the buyer takes possession of the real estate, but the seller retains the right to sue to recover the real estate if the buyer fails to fulfill his or her contractual obligations. As a general rule, legal title is not transferred to the buyer until all payments are made. Evidence of title, such as a warranty deed, usually is placed with a third person who holds the document until payment is completed, at which time he or she delivers it to the buyer, who should make sure that it is recorded in the proper local records office, for example, the recorder's office or county clerk's office. Once again, because a contract is involved, attorneys for both parties should be consulted to review its terms. Finally, since title is not transferred until full payment has been made, the contract should be recorded by the buyer with the recorder's or county clerk's office so that his or her interest in the property is protected until payment is made in full.