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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 42161
Experience:  Texas Attorney for 30 years dealing in real estate
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Im looking to purchase a property in Florida (Broward

Customer Question

Im looking to purchase a property in Florida (Broward County) using Seller Financing. The seller suggested a balloon payment as well. How can I protect myself in a transaction like this? Is there a standard contract for this type of purchase?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Florida
JA: Has anything been filed or reported?
Customer: no
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 4 months ago.
Category: Real Estate Law
Expert:  Ray replied 4 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

Expert:  Ray replied 4 months ago.

I would try to get a fixed year note here with no balloon payment..The problem with these kinds of deals is that you would have to refinance to dodge the balloon payment here.You would want to use a local Florida title company here.You want a couple of things, seller disclosure, title search to make sure no hidden liens or encroachments, and they can also give you amortization schedule so you know your balance along the way.You would also be responsible for your own taxes and insurance since there is no lender or escrow with private financing.

The title company can male sure you get clear title, you get what you are paying for and alert you if there are problems.Title company can prepare a sales contract and hold the earnest money for closing as well.

I appreciate the chance to help you today.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Expert:  Ray replied 4 months ago.

Four major title companies to pick from

Welcome to First American Title in Florida

www.firstam.com/title/fl/

Welcome to First American Title in Florida. First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), ...

Central Florida Title

centralfloridatitle.com/

Central Florida Title is underwritten by the nations largest insurance companies, and we maintain incredibly high standards for your protection, privacy, and ...

About · ‎Glossary · ‎Mel Eidlen

Florida - Stewart Title

www.stewart.com/florida

And you can rest assured, that with Stewart Title Guaranty Company as your underwriter, we have the financial strength to get your largest commercial and ...

North American Title Company / Florida

www.nat.com/florida

North American Title Company / Florida. North American Title Company (NATC) is among the largest real estate settlement service providers in the United States

They will also make seller complete seller disclosure and help you with an inspection here which is also a good idea toidentify any problems.

Expert:  Ray replied 4 months ago.

Sample note with balloon

Promissory Installment Note
(w/Balloon Payment)

RECITATIONS:

Date:

Borrower:

Borrower's Address:

Payee:

Place for Payment:

Principal Amount:

Term:

Monthly Payments:________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

$_______________________________

________________________ (months)

$_______________________________

INTEREST RATE. Annual interest rate on matured, unpaid amounts shall be subject to interest at _____ per cent per annum, but not to exceed the maximum amount of interest permitted by the Laws of the State of Florida.

PAYMENT TERMS. This Note is due and payable as follows, to-wit: _____________________ (_____) [insert number of payments] equal monthly payments of $__________________ principal [insert monthly payment amount]. The first such payment due and payable on the 1st day of _____________________ , 20____, and a like installment shall be due and payable on the same day of each succeeding month thereafter until the total principal of $__________________ principal [insert total principal amount] is paid in full. If each payment is not paid on time, the remaining balance will be subject to interest at _____ per cent per annum, but not to exceed the maximum amount of interest permitted by the Laws of the State of Florida.

BALLOON PAYMENT. Borrower promises to make a single, final payment for the entire balance owed to the Payee on or before __________________ [due date for balloon payment].

BORROWER'S PRE-PAYMENT RIGHT. Borrower reserves the right to prepay this Note in whole or in part, prior to maturity, without penalty.

PLACE FOR PAYMENT. Borrower promises to pay to the order of Payee at the place for payment and according to the terms for payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment date.

DEFAULT AND ACCELERATION CLAUSE. If Borrower defaults in the payment of this Note or in the performance of any obligation, and the default continues after Payee gives Borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then Payee may declare the unpaid principal balance and earned interest on this Note immediately due. Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law.

INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All past due installments of principal and/or interest and/or all other past-due incurred charges shall bear interest after maturity at the maximum amount of interest permitted by the Laws of the State of Florida until paid. Failure by Borrower to remit any payment by the 15th day following the date that such payment is due entitles the Payee hereof to declare the entire principal and accrued interest immediately due and payable. Payee's forbearance in enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or remedy for a subsequent cause, breach or default of the Borrower's obligations herein.

INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of the maximum shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides other provisions in this instrument (and any other instruments) concerning this debt.

FORM OF PAYMENT. Any check, draft, Money Order, or other instrument given in payment of all or any portion hereof may be accepted by the holder and handled in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the payee and applied to this indebtedness in the manner elsewhere herein provided.

ATTORNEY'S FEES. If this Note is given to an attorney for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay Payee all costs of collection and enforcement, including reasonable attorney's fees and court costs in addition to other amounts due.

SEVERABILITY. If any provision of this Note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.

BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.

DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this Note.

CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular and plural.

GOVERNING LAW. This Note shall be governed, construed and interpreted by, through and under the Laws of the State of Florida.

Borrower is responsible for all obligations represented by this Note.

EXECUTED this __________ day of _______________________, 20_____.

[Borrower's Signature:]

__________________________

[Borrower's Printed or Typed Name]:

__________________________