Florida Seller's Disclosure of Financing Terms for Residential Property in connection with Contract or Agreement for Deed a/k/a Land Contract
What this document covers
The Seller's Disclosure of Financing Terms for Residential Property is a vital document that outlines the financing details related to a contract for deed, also known as a land contract. This form serves to inform the purchaser of the total purchase price, payment schedules, interest rates, and any applicable late charges. Unlike other real estate documents, this disclosure is specifically tailored for scenarios where the property is financed through a contract for deed, ensuring clarity and transparency in the financial obligations involved.
Key parts of this document
- Purchase price: Clearly states the total cost of the property.
- Payment schedule: Details the frequency and amounts of payments to be made.
- Interest rates: Specifies the applicable interest rate for the financing arrangement.
- Late charges: Outlines any fees that may apply for late payments.
- Signatures: Designates the necessary signatures required from the seller and purchaser.
Common use cases
This form should be utilized when a seller is entering into a contract for deed with a purchaser. Use it to ensure that all financing terms are disclosed clearly before the signing of the agreement. This is essential when the buyer is financing the purchase through installment payments rather than obtaining traditional bank financing.
Who this form is for
- Real estate sellers offering a contract for deed.
- Purchasers who are entering into a financing arrangement for property ownership.
- Real estate agents or brokers assisting clients with transactions involving seller financing.
Instructions for completing this form
- Identify the parties: Clearly state the names and contact information of both the seller and the purchaser.
- Specify the property: Provide the address and description of the property being sold.
- Enter the purchase price: Fill in the total purchase price agreed upon by both parties.
- Detail the payment terms: Outline the payment schedule, interest rate, and any applicable late fees.
- Obtain signatures: Ensure both parties sign and date the document to validate the disclosure.
Notarization requirements for this form
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failing to specify all financing terms clearly.
- Omitting signatures from both parties.
- Not updating the form if terms change before signing.
- Neglecting to provide a copy to the purchaser.
Benefits of completing this form online
- Convenient access: Downloadable format allows you to complete the form at your convenience.
- Editability: Easily customize the document to reflect specific terms of your transaction.
- Reliable legal content: Forms are drafted by licensed attorneys to ensure compliance with current laws.
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FAQ
A land contract is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, until the purchase price is paid in full.
You can sell your house on a land contract with an outstanding loan balance if your lender agrees and if the contract doesn't have a due-on-sale clause.
Sign a Land Contract At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required.
No statute prevents selling your mortgaged home using a contract for deed.A mortgage lender, though, can immediately foreclose its loan if it discovers a contract for deed sale took place. Other than mortgage lender permission to sell your home via contract for deed, you have no easy way around the due-on-sale clause.
It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, until the purchase price is paid in full. A buyer and a seller both sign the land contract covering agreed upon terms and conditions of the sale.
The main advantage of a land contract is that it's fairly easy to qualify for. As long as the seller is willing to go that route, there's little need for extensive credit checks. If the buyer defaults, the seller simply retains the property without the need of going through foreclosure.
At a minimum, a land contract should list the address of the real estate and the full legal description of the property, the purchase price, down payment amount, the monthly payment amounts and term, number of payments to be made, and any balloon payment required.
As the property is mortgaged, you can not sell part of the land without first getting your lender's consent.You may find that the lender wants to have a professional valuation carried out, for which you will have to pay and if there is still sufficient equity to support your mortgage you should get consent.
A: Yes you can, but you will need a good real estate attorney to do this for you, one that can structure this type of transaction.Ask someone who has recently sold a home or property, if they would recommend an attorney to get started.
