Q:

How do you write a contract for an owner-financed house purchase?

A:

Quick Answer

To write a contract for an owner-financed house purchase, first decide upon a set of terms, including the length of the loan, the amount of the payments, the frequency of the payments and the interest rate. Include any penalties for failure to pay and any responsibilities the owner has in the transaction.

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Full Answer

Search online for a form contract to facilitate the agreement. A good template addresses every possible issue associated with the house purchase, but it allows you to customize the contract by deleting any unnecessary sections. Do research about each aspect of the contract before finalizing it by consulting legal help or reading resources on owner financing. Use the deed of the home to confirm the information concerning the parcel of land and the description of the home.

Check with your bank or online with a reputable source to confirm reasonable interest rates. Assess the value of the home compared to other homes in the area or by hiring a surveyor or assessment specialist. Draft a complete version of the contract, and consult a free legal clinic or lawyer to confirm the document is appropriate. Make any needed changes, and finalize the document before going over it with the purchaser.

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