Who presents contracts for seller financing?

Question

I'm considering trying to acquire properties via a cash down payment and seller financing. I understand that the terms will be negotiated individually for every deal, but which side of the transaction does the actual task of preparing the documents (ie note, mortgage, and any other associated forms)?

Charles Carillo · Answer

@Derek Morrison

Usually, we will submit an LOI to the property owner that will outline all deal particulars (price, financing, terms, etc.). Once it is signed, we (as the buyer) will bring that to our attorney to have them draft the purchase and sale agreement/mortgage, etc.

Stuart Udis · Answer

You will typically see the seller elect to retain their own counsel to prepare seller financing loan docs. However it's not unreasonable for the seller to require the legal fees to be reimbursed at closing by the purchaser. Ultimately, who prepares and pays for the loan docs is dependent on the terms of the purchase agreement and can be negotiated. I know this does not pertain to your situation but I would always advise the seller providing seller financing to have their own counsel prepare the docs.

Shenell Caldeira · Answer

Find a local Title company and see if they can do the documents for you.

Christian Ehlers · Answer

Attorney or Title Company works. Don't sweat the details of the paperwork too much, let the professionals do that, it's usually pretty straight forward for them anyways. Spend more time & energy on finding these opportunities and negotiating the right terms

Chris Seveney · Answer

@Derek Morrison

Usually this is done by the lender. Some wil have an attorney or title company create the docs.

Who presents contracts for seller financing?

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