Delaware · 25 Del. C. §314Delaware seller financing and contracts for deed: the amortization schedule, the six-month limit and the 120-day redemption

Delaware regulates every contract to sell improved or unimproved real estate in which the seller provides financing. The contract must include a complete amortization schedule – each payment's principal and interest and the remaining balance – with a statement that both sides have read and understand it, signed by them (25 Del. C. §314(a)), and must state the principal amount of seller financing separately from interest, which may not be counted in the purchase price (§314(b)). For consumer purpose property – a one-to-four family home used for personal purposes – a seller-financed contract may not remain executory for more than six months, renewable once in writing for six more, before final settlement with a deed and, if needed, a mortgage back to the seller (§314(c)). The parties may instead agree to a conditional sale with the deed delivered on the last installment, but only if the agreement caps the rental value at 75% of the installment, gives the buyer 120 days after written notice of a payment default to redeem by paying the full remaining amount, and provides that the contract then converts to a lease with the down payment treated as a security deposit (§314(d)). Noncompliance makes the contract voidable (§314(e)-(f)).