Usury Defense in FL Real Estate Lending
FL usury defense in RE: borrower challenges rate exceeding statutory max. Applies: mortgages, hard money, seller-financed, and construction. Total cost analysis: origination, points, broker fees, commitment, and prepayment penalties (all = "interest"). Excluded: appraisal, title insurance, recording, taxes. Lender defenses: no intent, written authorization, federal preemption, corporate exemption (Section 687.11: LLCs exempt), and savings clause. Corporate borrower: most common defense.
Applies To
- Mortgages, hard money
- Seller-financed, construction
Fee Analysis
- Included: origination, points, broker
- Excluded: appraisal, title, recording
- Use of money test
Lender Defenses
- Corporate exemption (Section 687.11)
- Written authorization
- Savings clause
Related Terms
- Usury — Overview
Barnes Walker Real Estate
Barnes Walker’s attorneys handle usury in FL RE lending. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 687
Limits the maximum interest rate that may be charged on loans in Florida. The general usury limit is 18% for loans under $500,000 and 25% for loans of $500,000 or more.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC