A Note about the Legal Documents
Below is a simple explanation of what you will need to approve to complete seller finance terms. This is not intended to be legal advice, as you should certainly contact your attorney regarding any of the legal documents contained herein.
The Contract For the Sale and Purchase of Real Estate:
This agreement simply outlines the terms and conditions of sale that you as buyer and myself as seller mutually agree upon. The main highlights of this contract are the purchase price, financing terms, receipt of your down payment, and our guarantee in writing. Without this agreement, there could be some misunderstanding of the terms we both agreed upon and we certainly know that the key to any good relationship is excellent communication without ambiguity.
The Promissory Note:
Basically, you promise to pay each month on time the specified monthly payment. There are no pre-payment penalties. We do offer prepayment incentives that will save you lots of money. If you don’t pay on time we are going to charge you. If you continue to not pay on time we will send a certified letter giving you 30 days to make payment before we terminate the contract and re-sell your land. Nevertheless, if you call us or e-mail us and let us know what is going on we certainly can try to help you out.
Automatic Payments:
We are charging you a one time setup fee of $299 then $10 /month for the privilege of managing your note and providing a year end statement for tax purposes.
To keep our prices low, we are only going to accept automatic payments. You must subscribe to automatic payments either via Credit or Debit Card. Let me know if you need other arrangements for auto-payment other than those mentioned above. If you are late making payments we are going to charge extra fees.
If you sell your property you still have to pay us.
You have to reimburse us for your taxes on the property (or we can bill you monthly let us know which you prefer).
The Land Contract:
If you don’t make your payments we will give you 30 days notice and then have the right to take back the property without going to court.
Don’t dump environmentally hazardous waste on the property. You must pay off the contract prior to using the land. We don’t mind if you go visit it a couple weeks out of the year if you let us know ahead of time. However you are not allowed to live on the property during the contract. You must get prior written approval from us before making improvements such as building a shed. No clearing of timber or dumping allowed.
In summary, all of these documents say the same thing. Make your minimum monthly payments on time each month. Failure to do so leads to ugly legal stuff which will affect your credit rating. If you don’t want your property anymore call me and we can work something out. I’d rather work with you rather than have to send nasty certified letters giving you 30 days to make payment in full.