Client interested in selling to friend buyer financed - Need advise

Real Estate Broker · Palm Beach Gardens · Member since 2023 · 15 posts · 1 vote

Good evening Maite from Florida (currently living in Orlando),

I'm new to BiggerPockets :)

I have a client that is interested in selling her condo to a friend, owner finance.

Do I use the regular Residential Sale/Purchase contract? Anything additional clause I need to pay attention for this transaction?

I assume the terms are whatever they are comfortable negotiating, like rate, length of loan and then the title company drafts the details of the loan?

Thank you!

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Maite Narciso
Some states have a seller financing addendum. Check if your state has one
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Larry Brewer
Financial Advisor · Indianapolis IN · Member since 2023 · 10 posts · 1 vote
3y
I'm in Indianapolis Indiana, and I have done a few of these in my time lol. I am a Licensed Mortgage Loan Officer in Florida & Indiana. A lot of my Loans where in Florida, but anyway The (Purchase agreement) should be done by Seller. That's if there is no one else involved.. meaning a Mortgage company...I have a few different types of Florida Purchase agreements I got when I did 4 of them for my customers. If you want me to, I can forward one to you, and if you want, I can fill it for you. Either way is good.I have been trying to get moved to Florida ( Hense) the License there lol.But I have a few things prolonging it. I am also New on here, and just trying to network with other People in Florida.
Larry Brewer
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Maite Narciso
OP
Real Estate Broker · Palm Beach Gardens · Member since 2023 · 15 posts · 1 vote
3y
Quote from @Chris Seveney:

@Maite Narciso
Some states have a seller financing addendum. Check if your state has one

Yes, just checked and we have it. So simply do a sale/purchase + addendum correct? Thanks Chris
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Maite Narciso
OP
Real Estate Broker · Palm Beach Gardens · Member since 2023 · 15 posts · 1 vote
3y
Quote from @Larry Brewer:

I'm in Indianapolis Indiana, and I have done a few of these in my time lol. I am a Licensed Mortgage Loan Officer in Florida & Indiana. A lot of my Loans where in Florida, but anyway The (Purchase agreement) should be done by Seller. That's if there is no one else involved.. meaning a Mortgage company...I have a few different types of Florida Purchase agreements I got when I did 4 of them for my customers. If you want me to, I can forward one to you, and if you want, I can fill it for you. Either way is good.I have been trying to get moved to Florida ( Hense) the License there lol.But I have a few things prolonging it. I am also New on here, and just trying to network with other People in Florida.
Larry Brewer

Nice to meet you Larry, no mortgage company only seller and buyer. I can prepare the contract as a realtor I assume. Someone replied at top and there is a seller finance addendum I can add to sale/purchase contract.
What part of Florida would you like to move to? Living in Orlando now and grew up in Miami :)
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Larry Brewer
Financial Advisor · Indianapolis IN · Member since 2023 · 10 posts · 1 vote
3y
Orlando is one place & Panhandle area. Leaning either way. Nice to meet you also & I need Partners in Crime in that area lol.
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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
3y
@Maite Narciso First off, to protect yourself and your friend, get your broker involved, please don't rely on Facebook or other forums to give you legal advice when you are a licensed person. However, you can use the FAR/BAR and select line 133 for financing type and use Rider C. Another option would be to have a lawyer or a title company that has a lawyer on staff draw up a more simple P&S agreement with applicable terms that both buyer and seller are comfortable with. Depending on the condo board, approval may be needed, so make sure the buyer is aware of all the norms that go along when purchasing a condo (fees, assessments, is it warrantable etc).
Best of luck
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Maite Narciso
OP
Real Estate Broker · Palm Beach Gardens · Member since 2023 · 15 posts · 1 vote
3y
Quote from @Shawn McCormick:

@Maite Narciso First off, to protect yourself and your friend, get your broker involved, please don't rely on Facebook or other forums to give you legal advice when you are a licensed person. However, you can use the FAR/BAR and select line 133 for financing type and use Rider C. Another option would be to have a lawyer or a title company that has a lawyer on staff draw up a more simple P&S agreement with applicable terms that both buyer and seller are comfortable with. Depending on the condo board, approval may be needed, so make sure the buyer is aware of all the norms that go along when purchasing a condo (fees, assessments, is it warrantable etc).
Best of luck

Thank you Shawn, yes I have a title company, that has a lawyer, that I work with. I will give them a call tomorrow. I appreciate your advice.
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