Delaware Contract for Deed Law

Contract for Deed - General - Delaware

Deleware Statutes

TITLE 25 Property
PART I General Provisions
CHAPTER 3. TITLES AND CONVEYANCES

25 Del. C. § 314. Contract requirements for the sale of real estate involving seller financing.

(a) Every contract for the sale of improved or unimproved real estate under which the seller(s) agree to provide any financing for the purchaser(s) shall include as an integral part of the contract a complete amortization schedule for all payments to be made under such financing agreement. Such amortization schedule shall:

(1) Include a per payment breakdown of principal and interest and a per payment computation of the unpaid principal balance remaining;

(2) Include a statement that the seller(s) and purchaser(s) have read and understand the amortization schedule; and

(3) Be signed by the seller(s) and purchaser(s).

(b) Every contract for the sale of improved or unimproved real estate under which the seller(s) agree to provide any financing for the purchaser(s) shall clearly state the principal amount of seller financing, exclusive of interest, which comprises the purchase price there under, and the amount of any interest to accrue under said seller financing shall not be included in the purchase price stated there under.

(c) Failure to comply with the requirements of either subsection (a) or (b) of this section shall make the contract voidable at the option of either party to the contract prior to settlement.

(68 Del. Laws, c. 227, § 1.)

Deleware Case Law

Kenyon v. Millard, 12 Del.Ch. 53; provision in agreement annexed for the purposes of securing specific performance of the contract are likely not a penalty and enforced by courts.

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