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Loan Purchase and Sale Agreement
Free loan purchase and sale agreement template — a lender sells an existing loan or note portfolio to a buyer.
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This free loan purchase and sale agreement covers 1. Sale of Loan(s), 2. Purchase Price, 3. Representations About the Loan, 4. Loan Documents Delivered, 5. Assignment of Security Instrument with 4 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Loan Purchase and Sale Agreement
Seller (Current Lender): [Name] · Buyer: [Name] · Loan(s): [Description — borrower name, original principal, current balance] · Date: [Date]
1. Sale of Loan(s)
Seller agrees to sell, and Buyer agrees to purchase, all right, title, and interest in the loan(s) described above, including the promissory note, any security instrument (mortgage/deed of trust), and all rights to collect payments.
2. Purchase Price
Purchase price: [Amount, which may be at, above, or below face value depending on the loan's performance and risk].
3. Representations About the Loan
Seller represents that: the outstanding balance is [Amount] as of [Date]; the loan is [current / delinquent by [Number] days]; and Seller holds clear title to the loan, free of any competing claim.
4. Loan Documents Delivered
Seller will deliver to Buyer: the original promissory note (endorsed to Buyer), the security instrument, payment history, and any other documents needed to service or enforce the loan.
5. Assignment of Security Instrument
Seller will execute and, where applicable, record an assignment of the mortgage/deed of trust to Buyer, providing public notice of the change in lienholder.
6. Notice to Borrower
Buyer and/or Seller will notify the Borrower of the sale and direct future payments to Buyer, consistent with applicable law (e.g. RESPA servicing transfer notice requirements, if applicable).
7. No Warranty of Collectability
Unless otherwise stated, Seller does not warrant that the loan will actually be repaid — Buyer is purchasing the loan with the associated collection risk, which is reflected in the purchase price.
Seller: ______________________ Date: ____________ Buyer: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal advice. When a residential mortgage loan is sold, federal law (RESPA) generally requires the borrower receive specific advance notice of the servicing transfer — failing to properly notify the borrower can create real compliance exposure for both the buyer and seller of the loan.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Sale of Loan(s), 2. Purchase Price, 3. Representations About the Loan, 4. Loan Documents Delivered, 5. Assignment of Security Instrument, 6. Notice to Borrower, …
- 4 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this loan purchase and sale agreement template really free?
Yes — this Loan Purchase and Sale Agreement template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.
What does this loan purchase and sale agreement cover?
This finance template includes 1. Sale of Loan(s), 2. Purchase Price, 3. Representations About the Loan, 4. Loan Documents Delivered. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. Financial documents like this can touch usury limits, lending disclosure rules, or tax treatment that vary by state and by amount — details a general template can't know. Have an accountant or attorney review the actual terms before money changes hands based on this.
Can I edit the wording?
Yes — edit directly on the page, adjust any section or clause, and re-fill the 4 placeholder fields to match your situation before downloading a PDF. It's a starting structure, not a rigid script.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
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