Delaware · owner financing
Delaware owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Delaware — statute, recording, default remedies, interest caps, and where deals actually happen.
25 Del. C. § 101 et seq. (recording); no installment-contract-specific statute
Recordable with the recorder of deeds in the county where the property lies under 25 Del. C. § 153. No statutory deadline; recording necessary for priority.
Hybrid. Delaware courts of equity (Court of Chancery) apply equitable-mortgage doctrine; forfeiture clauses are scrutinized.
Is owner financing legal in Delaware?
Recognized at common law as 'installment land contracts' or 'contracts for deed.' Less commonly used given Delaware's small size and well-developed mortgage market.
How do you record a owner financing agreement in Delaware?
Recordable with the recorder of deeds in the county where the property lies under 25 Del. C. § 153. No statutory deadline; recording necessary for priority.
What happens if the buyer defaults?
Hybrid. Delaware courts of equity (Court of Chancery) apply equitable-mortgage doctrine; forfeiture clauses are scrutinized.
What is the maximum interest rate?
5% above the Federal Reserve discount rate is the default legal rate; parties may contract higher for most transactions (6 Del. C. § 2301). Many residential transactions exempt.
What disclosures are required?
Seller's Disclosure of Real Property Condition (6 Del. C. § 2572 et seq.) for residential 1-4 unit; lead-paint federal disclosure.
Who's protected — buyer vs. seller
Buyer protections
Court of Chancery equitable jurisdiction; equitable-mortgage doctrine; statutory residential disclosures; equitable redemption.
Seller protections
Title retention; chancery enforcement; specific performance.
Where in the state do these deals happen?
Rare; occasional rural Sussex County properties, intra-family transfers, distressed sales.
Notable case law
Research needed for definitive Delaware Court of Chancery precedent.
Looking at a Delaware deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Delaware contracts and remedies are fact-specific — consult a licensed Delaware real-estate attorney before signing anything.