We are selling land and the person is going to make a down payment, monthly interest payments and then in 7 months will make the final balloon payment. Should I have some legal jargon in place so he doesn't default or do you think the vacant land real estate sale agreement is enough between the seller and buyer?
Answer
If the loan isn't going through a bank, you need to talk with your own attorney before agreeing to a seller finance deal. The "legal jargon" you refer to is what will make it possible to foreclose or declare forfeiture of the contract (depending on how you set this up). Even trustworthy responsible buyers run out of money and purchasers default on loans. This is why there is an entire lending and legal industry set up to deal with such contingencies. Go talk to a real estate attorney, or better yet, get a bank involved with the loan.
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