If I want to lend somebody $10,000 cash for house renovations against his house title as collateral, how do I do this legally and where can I find proper information?
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If I want to lend somebody $10,000 cash for house renovations against his house title as collateral, how do I do this legally and where can I find proper information?
The terms will be for 1 year at 20% a month interest rate. They guy is fine with these terms. I know that his house was paid off in full in cash (around $90k).
Asked on November 29, 2014 under Business Law, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
There are a few concerns here. First, the 20% is in excess of the usury laws in the state of Florida, which sets the limit for loans at 18%. So I would never recommend preparing any lending documents with out the use of a lawyer and I think no lawyer will do so at that rate. Moreover, even if you dod prepare and file the right documents, I think that the borrower could renege based upon the usury laws. Re think this.
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