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Con: Higher Interest Rates The seller knows that youre interested in a land contract likely because you cant be approved for a standard mortgage. Because the seller is taking on the higher risk, theyll probably charge you a rate thats higher than current market interest rates for traditional financing.
The State of Florida views a land contract as borrowed money and therefore collects an intangible tax and documentary stamps from the buyer as if there was a note and mortgage involved. The State of Florida views a buyers interest in a land contract as an equitable interest.
These laws mandate that all Contracts for Deed must be in writing, include the signatures of all parties involved, and be recorded in the county where the property is located. This ensures the agreement is legally binding and provides public notice of the buyers equitable interest in the property.
In Florida, a contractual right is assignable unless: The assignment is prohibited by statute or on public policy grounds (see, for example, Law Office of David J. Stern, P.A.
Most land contract homebuyers pay property taxes, even when their name is not on the deed. Local property taxes are typically the responsibility of the homeowner.
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Who pays closing costs in Florida? In Florida, similarly to other states, closing costs are charges that applied to both parties in a real estate transaction, the buyer AND the seller.
In real estate, due diligence includes reviewing documents and contracts, thoroughly inspecting the property, and evaluating risks associated with a property or piece of land prior to purchasing. It is basically doing your homework prior to purchasing.
With a traditional land contract agreement, the seller maintains ownership of the home until the contract is paid off. Buyers receive equitable title but not the legal title this means that they can benefit from the homes appreciation in value, but cant transfer property ownership.

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