Purchase Money Mortgage: for Florida Property

Definition: A mortgage given by the buyer to the seller at the time of purchase to finance part of the purchase price. The seller extends credit directly to the buyer, secured by the property being purchased.

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PMM Structure for Florida Property

FL PMM structure: promissory note + mortgage (recorded at closing). Seller-financed terms: 10-30% down, 1-3% above market rate, 3-10 year balloon or 15-30 year amortization. Documents: note, mortgage, TILA disclosure (if 5+ per year), title search, and insurance (seller as loss payee). Usury limit: 18% under $500K (Section 687.02); 25% over $500K; criminal above 25%.

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Barnes Walker Real Estate

Barnes Walker’s attorneys structure PMMs for Florida transactions. Request a legal inquiry for assistance.

Florida Law Reference

Fla. Stat. Ch. 697

Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC

Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney-client relationship with Barnes Walker, Goethe, Shea & Robinson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.

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