Land contracts, like New Coke, never caught on in Florida for a number of justifiable reasons. Quite often I am asked if the buyer can enter into a land contract or in some states referred to as an Agreement for Deed.

Land contracts are not generally utilized in Florida for four reasons.

1. The State of Florida views a land contract as a transfer of interest and therefore collects from the seller a documentary transfer tax on the property as if the property is sold, despite the fact the seller does not convey a deed.

2. The State of Florida views a land contract as borrowed money and therefore collects an intangible tax and documentary stamps from the buyer as if there was a note and mortgage involved.