Usury in Florida Real Estate Lending
FL RE usury: applies to seller financing, private money, and construction. Key exemption: corporate borrower (Section 687.11: LLC/corp = exempt; most commercial RE). Individual borrowers: 18% limit applies (total cost). Entity structure: LLC at 15% + 5 points = not usurious; same to individual = potentially usurious. Sham entities may not be respected. Borrower: know total rate, attorney review, consider LLC, check savings clause. Warning: high rates + excessive fees. Remedies: double interest + forfeiture.
RE Application
- Seller financing, hard money
- Construction loans
Entity Strategy
- LLC/corp: exempt (Section 687.11)
- Individual: 18% limit
- Sham entities: not respected
Borrower Protection
- Know total cost, attorney review
- Consider LLC, savings clause
- Warning: high rates + fees
Related Terms
- Usury — Overview
Barnes Walker Real Estate
Barnes Walker’s attorneys handle FL RE usury. 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