Owner Finance Contract
Owner Finance Contract
This Owner Finance Contract (the "Contract") is made and entered into as of March 21, 2050, by and between [Your Name], residing at [Your Company Address], hereinafter referred to as the "Seller," and [Buyer's Name], residing at [Buyer's Address], hereinafter referred to as the "Buyer."
1. Property Description
The Seller agrees to sell the property located at [Your Company Address] to the Buyer under the terms of owner financing. The Property is further described as follows:
-
Legal Description: Lot 123, Block A, Smithson Estates Subdivision, according to the recorded plat thereof as recorded in Plat Book 45, Page 67, of the County Recorder's Office.
-
Unique Identifiers: Parcel ID: 123-456-789; Tax Identification Number: 987654321
2. Purchase Price and Down Payment
The total purchase price of the Property is $250,000. The Buyer agrees to make a down payment of $50,000 on the effective date of this Contract.
3. Financing Terms
The remaining balance of the purchase price shall be financed by the Seller at an interest rate of 4.5%, with monthly payments of $1,200 to be made by the Buyer to the Seller.
4. Property Inspections
The Buyer shall have 14 days from the effective date of this Contract to conduct inspections of the Property at their own expense. Any issues identified during the inspection period shall be addressed by the Seller, with the Buyer having the option to renegotiate or terminate the contract if satisfactory resolutions cannot be reached.
5. Escrow Account
All down payments and subsequent payments made by the Buyer shall be held in escrow until the contract terms are fulfilled, providing security for both parties.
6. Insurance Requirements
The Buyer shall obtain homeowner's insurance for the Property with coverage sufficient to protect both parties' interests. The Seller shall be named as an additional insured party until full payment is received.
7. Maintenance and Repairs
The Buyer shall be responsible for routine maintenance and minor repairs of the Property. Major repairs exceeding $1,000 shall be the responsibility of the Seller until the property is transferred.
8. Right of Entry
The Seller shall have the right to enter the Property for inspections, repairs, or maintenance, providing reasonable advance notice to the Buyer except in cases of emergency.
8. Assignment and Transfer
This Contract may not be assigned or transferred by either party without the prior written consent of the other party, except in cases of inheritance or court order.
9. Tax and Legal Obligations
The Buyer shall be responsible for property taxes from the effective date of the contract. Any prepaid taxes by the Seller shall be reimbursed to the Seller on a prorated basis.
10. Termination and Buyout Options
The Contract may be terminated by mutual agreement of both parties or in the event of default by either party. Early termination or buyout options may be considered upon request, subject to negotiation and agreement by both parties.
11. Dispute Resolution
Any disputes arising under this Contract shall be resolved through mediation, arbitration, or litigation, as determined by the parties or by a court of competent jurisdiction.
12. Governing Law
This Contract shall be governed by and construed by the laws of [State], without regard to its conflict of laws principles.
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.
[Your Name]
[Date Signed]
[Buyer's Name]
[Date Signed]
