A Florida seller is offering owner financing with a balloon payment due in 3 years. The property is the buyer's primary residence. What disclosure requirement applies under Florida law?
Correct Answer
B) Balloon payment disclosure must be provided before closing
Correct: Florida requires specific balloon payment disclosures for owner-financed residential properties. Why not A: Special disclosures are required for balloon payments. Why not C: SAFE Act has exemptions for certain owner financing. Why not D: Licensing exemptions don't eliminate disclosure requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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