Owner Financing Contract
This Owner Financing Contract ("Contract") is entered into on [DATE], between [YOUR NAME], hereinafter referred to as the "Seller," and [Buyer's Name], hereinafter referred to as the "Buyer," collectively referred to as the "Parties."
1. Property Description:
The Seller agrees to sell and the Buyer agrees to purchase the following property:
Address: 123 Main Street, Anytown, USA
Legal Description: Lot 1, Block A, Anytown Estates
Parcel Number: 123-456-789
Any Additional Details: Single-family residential property with three bedrooms and two bathrooms.
2. Purchase Price:
The total purchase price for the property outlined above is Fifty Thousand Dollars ($50,000.00), payable by the Buyer to the Seller by the terms outlined herein.
3. Down Payment:
Upon the execution of this agreement, the Buyer must remit a sum of Ten Thousand Dollars ($10,000.00) as a down payment to the Seller. This transaction is expected to occur on the occasion of the contract signing.
4. Owner Financing Terms:
4.1 Interest Rate:
The Parties agree that the Buyer shall pay interest on the outstanding balance at the rate of 5.5% per annum, compounded monthly.
4.2 Term:
The term of this Contract shall be five (5) years, commencing on the date of execution of this Contract.
4.3 Payment Schedule:
The Buyer shall make regular monthly payments of Seven Hundred Fifty Dollars ($750.00), beginning on April 1, 2050, and continuing on the 1st day of each month thereafter until the total purchase price, including interest, is fully paid.
4.4 Prepayment:
The Buyer reserves the right to prepay the outstanding balance, in part or in full, at any time without penalty.
5. Default:
5.1 Late Payments
In the event of a late payment, the Buyer shall incur a late fee of Fifty Dollars ($50.00), due immediately upon notice from the Seller.
5.2 Default:
If the Buyer fails to make payments as outlined in this Contract for thirty (30) days, the Seller may declare the Buyer in default and pursue remedies as permitted by law.
6. Title and Possession:
The Seller will retain the title to the property until the entire purchase price, including any additional interest charges, is completely paid off. Despite this, the physical control and possession of said property will be handed over to the Buyer immediately after the formalization and execution of this Contract.
7. Taxes and Insurance:
The individual or entity who is identified as the Buyer in this contract shall be held accountable for bearing all costs about every kind of tax, assessments of value, and premiums related to insurance that are directly linked with the property. This financial responsibility shall come into effect from the day on which the said Buyer takes possession of the property.
8. Closing Costs:
The Parties involved in this transaction are bound by the contract to carry the burden of their closing costs. These closing costs include but are not limited to, the fees for legal representation which could arise from an attorney, the charges for title insurance that covers the loss of property due to legal defects, and finally, the recording fees that could be linked to the registration, indexing, or other official actions related to securing the public record documentation of this transaction.
9. Governing Law:
The governance and construction of this contract will strictly observe and be consistent with the laws of the State of California. This observation and adherence to the said laws will be performed without any consideration of the principles, which may lead to a conflict with the laws of other jurisdictions.
10. Entire Agreement:
This Contract stands as the complete agreement between the involved Parties and it replaces, overtakes, and supersedes all prior agreements, as well as verbal or written understandings, representations, and warranties. All of these aforementioned items, if any, that were previously in existence before this Contract have been expressly related to the subject matter herein, and this Contract overrules their status, implying that they no longer hold any weight or influence over the said subject matter.
11. Signatures:
IN WITNESS WHEREOF, the Parties have executed this Contract as of the date first above written.
[YOUR NAME]
[DATE SIGNED]
[BUYER'S NAME]
[DATE SIGNED]
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