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Seller Financing 101: Understanding Seller Financing Options and Advantages

Timed Course Outline (1.0 hours)

Length of Time Subject Matter Segment and Description
15 minutes When is seller financing useful?
Considerations:
  • Seller’s equity
  • Price
  • Down Payment
  • Interest Rate
  • Negotiation
  • Other questions raised by class participation
15 minutes Using the REPC and the Seller Financing Addendum to negotiate the terms of seller financing transaction
  • Review of the forms
15 minutes The importance of a closing agreement for seller financing transactions, and terms that can be included in the closing agreement and closing documents.
  • Provisions that survive the closing
  • Deeds, promissory notes, trust deeds, and escrow agreements
15 minutes What are the risks to buyers and sellers, and how can they protect themselves?
  • Sellers:
    • Will the buyer take care of the property?
    • Will the buyer make his payments on time?
      • Credit history
      • Employment and other income
      • Down payment
      • Expectations and enforcement
      • Escrow services
    • What to do in case of default
    • Other issues raised by raised by class participation
  • Buyers:
    • What are the seller’s obligations?
    • Should I insist on an escrow service?
    • Other issues raised by raised by class participation