Considering an Owner Finance Deal

[Stanley E.]

Hi BP. I'm contemplating an owner finance deal. What all do I need to have in place? Lawyer? Realtor? And if the deal goes through, who is responsible for the taxes? Me? Thanks.

[Michael Hassell]

buying or selling?

A lawyer is usually a good idea and could be essential. Really depends on your level of comfort and experience.  Forgive me, but since you had to ask I'm going with "needs lawyer" .  If nothing else pay one to at least review the documents before you sign.

My favorite two reasons to do an owner financed property is 1 no realtor and 2 No bank.  (Actually reverse those).  With that said if there is a realtor involved already I think it's wise and ethical to make them whole and you may have a legal obligation to do so.

Responsibility for physically passing the  taxes can be set forth in the contract but know that ultimately as the buyer is your house that's at risk of anything hits wrong.

I've bought a few homes this way and in always looking for more.  The simplest was simply put together as a law option on a home I fixed up and flipped...most profit I ever made on a single deal.