Hypothetical question. I live in Illinois and I buy a property in Texas, and sell it w/seller financing to someone who lives in Maine. I'm assuming each state has their own laws about seller financing, so which state's laws would I have to follow in this situation? My gut tell me Texas' because that's where the property is located. Am I wrong?
The contract "Boiler Plate" normally says which states laws hold precedence. You could state Illinois or Texas in the original agreement. The future plaintiff may bring a cause for change of venue for just about any reason and could try to move it to Milwaukee if they have cause.
Have all contracts reviewed by an attorney before offering them or signing one.
If you consider which state will record the deed, the mortgage and the promissary note, then it should be a pretty good guess that that state's law governs.