Owner-financing is a service that is offered to customers that meet certain criteria. The criteria that is required to be met is as follows. First, the property for sale must be eligible for owner-financing. Second, the buyer must committ to place 5.00% down payment of the purchase price, not including interest fees, closing costs, and other charges. This is a special service that is not required to be offered. The buyer using owner-financing agrees to all of these terms and conditions.
After a purchase price has been agreed upon by the buyer and the seller, the buyer will be provided the choice of owner-financing. If the buyer opts-in for owner-financing, must choose the terms for financing. The term for financing is the following, but can change at any time without notice, 1 (ONE) YEAR [12 (TWELVE) MONTHS], 3 (THREE) YEARS [36 (THIRTY-SIX) MONTHS], OR 5 (FIVE) YEARS [60 (SIXTY) MONTHS]. From there, the buyer will committ to a certain down-payment of the purchase price. The minimum amount for down-payment of purchasing a property with owner-financing is 5.00% (FIVE-PERCENT) of the purchase price.
The interest rate for the owner-financing will be agreed upon between the buyer and seller. The interest rate will never be higher than 7.50% (SEVEN-AND-ONE-HALF-PERCENT) annually. The interest rate will be dependent upon the deposit amount, and the term amount. The larger the depsoti amount, the smaller interest rate. The shorter the term, the smaller the interest rate. The interest rate with deposit on the purchase amount, will be agreed upon before any contract for deed, sale, etc. is signed.
Upon entering into contract, the interest rate will be locked-in, along with the term, and deposit amount. The contract will specifically show the buyer all payments that are to be made, all interest that would be paid, and all, if any, fees and charges that may apply.
It is important to know and understand that if one does choose owner-financing, than the following terms for purchasing the property is applied. The DEED/TITLE of the property will NOT be recorded until all payments have been made, with interest, and any applicable fees. In no way, shape, or form will the DEED/TITLE of the property be transferred to the buyer before all payments due.
Monthly statements are not required to be sent, and payments will not be contingent on receiving a statement/bill. A statement/bill will be sent by mail and/or e-mail, but the buyer should not wait until the statement is receieved to make the payment. The payment has to be post-marked by the day it is due. All late payments will be accompanied by any applicable fees. Notification will be sent to the buyer if payment is not received, by means of MAIL. At least 1 (ONE) notification will be issued per month. If there is no payment/response of any kind by 2 (TWO) months, buyer will autmatically agree to forfieture of any and all claims of the property, any and all claims of monies deposited and paid on the property, any and all fees, charges, etc. that have arisen from the property. The buyer will also be responsible for any losses accured for future sale of the property, from the seller to any other buyer. The buyer also releases all rights to cliams, litigation, losses, etc., with anything in regards to the property and/or the buyer.
Though the title is not transferred to the buyer until all payments are completed, the buyer will have limited rights. The buyer will be able to use the property in a limited basis, and will not have the right to complete any substantial improvements, such as building any structures, digging a well, etc.; changing the zoning on the property; selling the property; leasing the property; renting the property; or any other actions in which requires the owner of the property to complete or apply for.
Once all payments have been made and applied, the DEED/TITLE will be transferred and recorded to the buyer. All payments include, but not limited to, the down payment of the pruchase price; all monthly owner-financing payments, including interest, principle, and fees; and closing costs, including but not limited to, transfer tax, recording fees, other applicable fees, etc. All closing costs will be paid for at the end of the owner-financing term. IF closing costs are NOT paid for with-in 2 (TWO) months, buyer automatically agrees to forfieture of all monies deposited and paid, any and all claims of the property, etc.
The buyer will not have an option to NOT purchase the property. The buyer will not have any costs/expenses, fees, etc. covered for any losses from the property, including but not limited to increased/decreased market-value.
All payments made must be by check. The down-payments must be by certified bank check. All monthly payments can be by personal checks. If a personal check does not have coverage, and bounces, the buyer will be reponsible for bounced check fees, and must pay with certified bank check for at-least 6 (SIX) months. Other fees apply, and will be discussed and agreed upon with the buyer.
Other terms and conditions apply in regards to the sale, fees, and owner-financing terms.