How does our financing work?

Financing through our company is done via a Contract for Deed, also called a “land contract”, “bond for deed”, or installment sale agreement. An example copy of our contract for deed can be found at the following link: Contract for Deed Sample

Some common questions about a contract for deed

Q: Do I own the property during a contract for deed?

A: Yes, as soon as the agreement is signed and notarized by both parties, the buyer holds full equitable interest to the property. This means the buyer can use the property, build on the property and/or sell the property. The seller no longer has rights to build, use or sell the property, as these rights are now exclusively rights of the buyer. The buyer is also entitled to any appreciation or depreciation of value on the property.

Q: Am I responsible for the property taxes?

A: Yes, the buyer is responsible for the property taxes. Since the buyer now owns the property, they would also be responsible for property taxes as well.

Q: How reputable is our company, what reassurances do I have as a buyer?

A: We understand, as with anything, purchasing property via online methods can be a little more unconventional than other means. This is why we take every step possible to ensure we are as transparent as possible. We are members of not only the BBB of West Florida, but the Cape Coral and Charlotte County Chamber of Commerce. We also post our license info on our website for everyone to see. To see our credentials, please visit our credentials page.

Once all payments have been made on the agreement, the buyer will receive a Warranty Deed to the parcel. The buyer will have the option to acquire title insurance on the parcel at the time of transfer. Title insurance gives the buyer additional protection in that you are protected against any sort of title defects on the property for the entire duration you own the parcel. So if a few years down the line, any sort of title issue is hindering you from being able to sell the property, you are covered for the purchase price of the property. The insurance company either would have to fix whatever defect is on the title or pay out the purchase price of the property.

During the agreement the buyer is responsible for getting payments into our office in a timely manner. However as a courtesy we do send out monthly invoices via email to our customers. To see an example of the invoice you would receive, please look at our Example of Monthly Invoice. Payments are always due by the 1st of each month.

Tax bills are received in November by us, at this time we forward the tax bills to the customer. Taxes are due the next calendar year by April 1st; however you do get discounts for paying early.

Another common question we receive is, “What happens if I am late one month”.

This is a very good question, as some prospective buyers may believe if one month they are having troubles, that if they are late on one payment, the whole agreement would go null and void and they would lose all of the money they had put towards the property.

First off, let’s debunk the myth that you automatically lose all of your payment if you are late by a couple days one month. Our company does everything possible to work with our customers to ensure they are able to continue making payment on their properties.

Communication is key with us, as long as a customer will stay in contact with our company about the situation and why a payment may be late; we are willing to help in the form of payment extensions or in severe cases, moving a payment or two until the end of the loan.

In the event a customer does not contact us and we are unsuccessful in reaching them, then we begin to move into the default process.

Typically 15-20 days after the payment is due and without contact from the customer is when we will begin this process. NOTE THIS PROCESS WILL NOT BEGIN IF YOU ARE IN CONTACT WITH US, WE WILL NOT INTIATE THIS PROCESS UNLESS WE DO NOT HEAR FROM YOU ARE CANNOT REACH AN AMICABLE SOLUTION.

Once this time has passed, we must first, by law send a “Notice of Default or Performance”, you can view an example of this document here. It gives the customer 14 days from the receipt of the letter to cure the past due balance due on the property.

If these 14 days pass without remedy then we are required by law once again to send out a “Notice of Failure to Cure”. This document is the final notice the customer will receive, it allows an additional 15 days for the customer to bring current all past due amounts on the property. An example of this document can be found here, this along with the “Notice of Default or Performance” both must be sent via registered receipt mail.