owner finance contract

2 Replies

Hello

can some one tell me  what contract do I need to owner finance a house (in Texas) that I own and is paid for .

                              Thank You

So you're trying to sell it on a seller carried note? You're going to need to establish the terms of the transaction so here are some things to think about:

1. What is your Sales Prices

2. How much money do you want Buyer to put down

3. What kind of interest rate are you looking for

4. How long you want to hold the note

5. Do you want to receive interest only payments or principal and interest payments

6. What happens in the event of prepayment, or your Buyer sells the place, etc. 

7. Any other terms that you or the Buyer are interested in.

Once you have those details sketched out you will draw up a Purchase & Sales Agreement that outlines that the purchase will be financed with seller financing. You are going to want to draw up two more contracts- a Promissory Note (the mortgage) and a Trust Deed so that Note is secured in first position on the property so that you have proper recourse if anything goes wrong.

You can get these contracts online, but do yourself a favor and talk about all these things with your Buyer ahead of time, write it down, and then go to a real estate attorney to draw up the Purchase and Sale Agreement, the Promissory Note, and the Trust Deed all at one time. It might cost you a couple hundred bucks but it will be done correctly and will save you a lot of time, energy, and money in the long run. All of the contracts and Earnest Money will go to the Title Company/Escrow and within a couple weeks you should be on your way.

Good luck!