Florida Land Seller Financing Guide – Angel REI Properties LLC

1️⃣ What type of contract am I signing?

You are signing an Agreement for Deed (Land Contract).

For privacy and security reasons:

  • The full Agreement for Deed is not recorded publicly.
  • Instead, we record a Memorandum of Agreement for Deed in the county where the property is located.

The Memorandum simply gives public notice that a valid contract exists. It does not transfer legal title.

2️⃣ Do I legally own the property after signing?

Not yet.

During the contract:

  • You receive possession and use rights.
  • You receive equitable interest in the property.
  • Legal title remains with Angel REI Properties LLC until the contract is paid in full.

After final payment:

  • A Special Warranty Deed is signed and recorded.
  • You become the full legal owner.

3️⃣ Why does the Property Appraiser show my name as owner?

The Property Appraiser may update their records for tax purposes after the Memorandum is recorded.

However:

  • This does not mean you hold legal title.
  • Legal ownership transfers only after the deed is recorded upon payoff.

4️⃣ What is the interest rate?

The interest rate is:

  • 15% per year
  • Calculated using a 360-day year
  • Simple interest (not compounded)

5️⃣ How are monthly payments made?

All payments are managed through:

🏦 Terra Notes Loan Management Simplified

Buyers must:

  • Create a Terra Notes account
  • Set up their payment portal
  • Authorize automatic payments via:
    • ACH (bank transfer), or
    • Credit card

6️⃣ What does my monthly payment include?

Your monthly payment includes:

  • Principal
  • 15% interest
  • Property taxes (collected monthly)
  • $10 servicing fee
  • $5 transaction fee (ACH or credit card)

You do not pay property taxes separately — we collect them monthly to ensure they remain current.

7️⃣ Is there a down payment?

Yes.

A $500 down payment is required to reserve the property and begin the contract process.

8️⃣ What is the 15-day due diligence period?

After your $500 down payment:

  • You have 15 days to inspect and research the property.
  • You may cancel within 15 days for a full refund.
  • After 15 days, the deposit becomes non-refundable.

9️⃣ What happens if I make a late payment?

If a payment is more than 10 days late:

  • $25 late fee
  • $5 per day thereafter until paid

Timely payments are essential to maintain your contract rights.

🔟 What happens if I stop making payments?

If payment is unpaid for 14 days, you are in default.

You will receive a Notice of Default.

If not cured:

  • The contract may be terminated.
  • You may lose possession rights.
  • Payments made may be forfeited.
  • Collateral may be enforced under Florida law.

1️⃣1️⃣ What is collateral and why is it required?

Because this is private seller financing (no bank involved), we require additional collateral to prevent defaults.

Collateral may include:

  • A vehicle
  • Trailer or mobile home
  • Other land
  • Other personal property owned free and clear

We execute a Security Agreement and record a UCC-1 lien with the State of Florida.

You keep full use of your collateral as long as payments are current.

Once the loan is paid in full:

  • A lien release is issued.
  • A UCC-3 termination is filed with the State.

1️⃣2️⃣ Can I use the land while making payments?

Yes.

After signing and recording the Memorandum:

  • You may visit and use the land.
  • You must comply with county zoning and building rules.
  • Permanent construction is recommended only after full ownership.

1️⃣3️⃣ Can I sell the land before paying it off?

No.

You cannot:

  • Sell
  • Transfer
  • Assign
  • Lease-option
  • Mortgage

the property during the contract term.

1️⃣4️⃣ Who pays property taxes?

You do.

However, we collect taxes monthly within your payment to prevent delinquency.

1️⃣5️⃣ Is the land sold with warranties?

No.

All land is sold:

AS-IS

Buyers must complete their own due diligence during the 15-day period.

1️⃣6️⃣ Why is financing more expensive than cash?

Financing includes:

  • Higher risk to the seller
  • No credit check
  • No bank approval process
  • Flexible underwriting
  • Administrative servicing costs
  • Risk of default

Cash buyers assume no financing risk, so pricing is lower.

1️⃣7️⃣ Do I need a lawyer?

We recommend consulting a Florida real estate attorney before signing any legal document.

This program is designed to be simple and transparent, but legal review is always encouraged.

⚖️ Legal Disclaimer

This FAQ is for informational purposes only and does not constitute legal advice.

Angel REI Properties LLC is not a law firm.

All transactions are governed by Florida law. Buyers are encouraged to consult an attorney before entering into any binding agreement.

Recording of a Memorandum of Agreement for Deed does not transfer legal title. Legal title transfers only upon full payment and recording of a deed.

Failure to comply with payment terms may result in contract termination and enforcement of collateral rights.

Still have questions? Check out our Angel REI Properties / How It Works / FAQ