Seller financing question

[Sharad M.]

Hello all,

I am negotiating a seller financing deal. The owner has no mortgage on the property. This will be my first seller financing deal, so I am a little confused. My questions are:

1) When I write up the agreement, do I include that the payments will be made to an escrow account? My main concern is that I want to have a proof that the payment was made each month.

2) What are some other things I need to be careful about?

Thanks in advance for all the replies.