Seller Financing Question

[Caroline Widjaja]

Hello BP,

Would any RE attorneys/someone who has experience in this Seller Financing process to help me verifying if the below TERMS are okay for my side (Seller)? Just a little background, the Buyer will put 50% down, contingent on appraisal, and closing in 10 days after appraisal.

Anything else should I worry? 

CONTINGENCY TERMS, CONDITIONS AND AGREEMENTS WHEREAS, Seller,

fully understands and agrees to enter into this binding agreement with the Buyer, to

sell the property to the Buyer under the following terms:

1). Seller agrees to carry a (50%) Deed of Trust in 2nd position

2). Term: One Year @ 4% APR, with no prepayment penalties

3). Compensation to Seller in escrow: 50% of the appraised value

4). Note maturity date: One year or before, after close of escrow as a balloon payment, with

accrued interest.

2nd position Deed of Trust terms:

2nd position Deed of Trust is divided as follows:

A)30% of the 2nd position Deed of Trust is to be recorded with the county recorder, by

escrow at the close of escrow, in favor of Seller as beneficiary.

B). 20% of the same 2nd position Deed of Trust, a Deed of Trust unto itself, will be held

outside of escrow by Seller and recorded with the county recorder, within (3) days after

close of escrow, for a combined 2nd position Deed of Trust of (50%). Buyer to incur all

expenses for having this portion of the 2nd Deed of Trust recorded, along with insurance on

said Deed of Trust, protecting Seller's interest