Seller Financing

Seller Financing

Seller Financing is similar to a standard bank loan except the seller is agreeing to provide the loan to the buyer instead of a bank. The buyer typically would still need to provide a down payment to the seller with the remainder of the loan being paid off in monthly installments. This payment is based on an agreement between the seller and the buyer on number of payments and the interest rate until the loan itself has been completely paid back. To protect both the seller and the buyer, a purchase agreement laying out the agreed upon terms would need to be drafted by an attorney so that it is legally enforceable in a court of law should any future dispute arise. Once both parties sign this agreement, the transaction is fully legal and enforceable./p>