Owner Finance Contract: Fill & Download for Free

We had offered a house for sale that we had just finished building. We offer owner finance and the properties sell very quickly.When I was in my 20’s I worked part time for a drafting service. This was in the days before autoCAD and our drawings were actually on paper. About 6 months after I started, the owner came though the office and pointed at 3 of us. He fired each of us for no reason, and I was out of a job I desperately needed while I was finishing school. No reason given and he wouldn’t even speak to me when I approached him.So, 30 years later, he strolls into our office to buy this neat little lake house we had just finished and was for sale. He and his wife had already looked at the house with Kenny, one of our site supervisors, and the wife was in love with it.I recognized him immediately, and listened to him as he explained that his wife loved the house, he had money in hand, etc. I nodded politely, then got up, walked to the door, opened it and said “Get out.”He looked at me and he clearly didn’t recognize me. Before he had time to say anything, I said the name of the company he had owned.Realization dawned on his piggy little face, and he began to speak. I cut him off, as he had me all those years ago, and once again told him to leave.He slunk out of the office empty handed, and we had the house sold with contracts signed, down payment in hand, and new owner out the door by end of business that day.Sucked to be him. Hope his wife appreciated losing the lake house she wanted.

There are a few things that you may be able to do to get everything sold:Get with a business broker. Let them know that the business and the building are for sale.Another option is owner financing everything. Owner financing will give you a much better chance of selling your business and your building.Another option is to give the business away to the owner of the building.If the business truly has zero value, you can use the business as a negotiating tool and you have nothing to lose.Figure out what the building is truly worth. Add about 10% to 15% to that price. Then offer owner financing for five years, with a 30 year amortization, with a 10% down payment. After five years, they either have to refinance and pay you off, or you can extend the contract for another five years if you’re enjoying the monthly payments and the interest that you’re receiving on your loan.If negotiations stall, toss your business in as a bonus to the potential buyer.I’m happy to help you talk through your options and help you gain some clarity. Feel free to contact me.

My house is paid off and I want to sell it to a friend without a real estate agent involved. He will be doing a payment plan. What steps or paperwork will this transaction consist of (California)?Hire a real estate attorney to draw up the sale contract and the owner financing contract!Use a title company to handle the down payment and closing costs. Make sure you get a preliminary title report so you know there are no undisclosed liens on the property. The seller will file a lien protecting his mortgage, just as a bank will do.The title company will take care of calculating the proration on the various fees - transfer taxes, HOA dues, sewer bills, property taxes, etc.The Seller must order the HOA resale package (if the house is in an HOA community). That provides you with all the current info you need - rules, by laws, finances, contact info, etc.You and the seller will also need to find a loan servicing company. It's in YOUR best interests to make your payments to an independent third party rather than the Seller.Is there a mortgage on the house that he will continue to pay until you can refinance? Keep in mind that the mortgage lender hold supreme spot as far as the liens on the property. If the Seller doesn't make those payments, the lender can foreclose and take the house even if you have made all your payments to the seller. This is why it's vital you have an attorney draw up the contracts. You need to make sure you have some kind of legal recourse should something happen.