Massachusetts · owner financing
Massachusetts owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Massachusetts — statute, recording, default remedies, interest caps, and where deals actually happen.
M.G.L. c. 183 (conveyances/recording); M.G.L. c. 244 (foreclosure if recharacterized); no installment-land-contract-specific statute
Recordable at the Registry of Deeds for the county/district where the land sits, under M.G.L. c. 183 § 4. Recording is required for priority against bona fide purchasers; standard Registry fees apply.
Hybrid; equitable-mortgage doctrine generally requires seller to pursue foreclosure-type process or afford redemption when buyer has built equity. Forfeiture clauses are scrutinized.
Is owner financing legal in Massachusetts?
Recognized at common law as 'purchase and sale agreements' with installment performance, or 'land contracts.' Massachusetts courts treat long-term installment contracts as equitable mortgages.
How do you record a owner financing agreement in Massachusetts?
Recordable at the Registry of Deeds for the county/district where the land sits, under M.G.L. c. 183 § 4. Recording is required for priority against bona fide purchasers; standard Registry fees apply.
What happens if the buyer defaults?
Hybrid; equitable-mortgage doctrine generally requires seller to pursue foreclosure-type process or afford redemption when buyer has built equity. Forfeiture clauses are scrutinized.
What is the maximum interest rate?
20% per annum civil/criminal usury (M.G.L. c. 271 § 49) absent notice-of-intent filing with the Attorney General.
What disclosures are required?
Lead Paint Disclosure (M.G.L. c. 111 § 197A) for pre-1978 housing; mandatory broker disclosures; Title 5 septic disclosure for systems; no installment-contract-specific form.
Who's protected — buyer vs. seller
Buyer protections
Equitable-mortgage doctrine; Consumer Protection Act (M.G.L. c. 93A) potentially applicable; equitable redemption.
Seller protections
Title retention until full performance; specific performance and damages remedies; foreclosure where treated as mortgage.
Where in the state do these deals happen?
Rare; occasional use for Berkshire/Cape rural parcels, intra-family transfers, distressed properties. Massachusetts overwhelmingly uses note-and-mortgage seller financing.
Massachusetts cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Research needed for controlling Massachusetts installment-contract case on equitable-mortgage characterization.
Looking at a Massachusetts 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. Massachusetts contracts and remedies are fact-specific — consult a licensed Massachusetts real-estate attorney before signing anything.