Who sets up an owner financing deal?

Question

I'm looking at a deal with a retiring landlord. They have a multi unit property which will not qualify for conventional financing.

We have hammered out an unofficial deal on seller financing. Who would actually set up the transaction, an accountant, an attorney, both? Do I need to look around for a specialized real estate attorney or accountant?

We both know how to work the numbers, but neither of us is familiar with exactly how to go about it from the legal standpoint. He obviously wants to make sure he gets paid. I want to make sure there can be no funny business if he changes his mind or have the government or his kids try to unwind the transaction if he dies or goes into assisted-living since I believe the seller technically retains title to the house.

Joey Banasihan · Answer

Hey @Thomas B. - As I am not familiar with your state, take this with a grain of salt and verify everything first. Every state handles this a little differently—some require attorneys to draft everything, others allow you to use standard real estate forms. For example, here in Boise, we can handle all kinds of creative financing (including seller financing) using our state’s real estate contracts.Once the terms are hammered out, the next step is making sure everything is protected and professionally handled. That’s where the title company comes in. They’ll draft up the final documents, handle the escrow, verify clean title, and make sure both sides are protected. They also make sure everything is recorded correctly, which is key.If you're structuring payments or want any extra guardrails (like servicing or payoffs), they can help with that too—or loop in a servicing company. Hope this is helpful, good luck!

Patrick Roberts · Answer

The terms of the deal (purchase and loan) are negotiated between you and the seller. A specialized attorney can (should) draft the documents for the loan (note, mortgage or deed of trust, etc). A closing attorney/title company will handle the closing and any title insurance policies.

Typically, the lender drives the bus when it comes to getting the lending docs together - they retain an attorney or consultant to represent them and direct the document creation. In most cases, these costs are paid by the borrower, typically as origination, legal or processing/underwriting fees. Again, all of this is negotiable.

Mike Grudzien · Answer

Get an attorney with experience doing seller finance deals.

James McGovern · Answer

Make a written offer on realtor paper. If he accepts , then you would be protected