Seller Financing Contract

Seller (Lender): [Name] · Buyer (Borrower): [Name] Property: [Address] · Purchase Price: [Amount] · Date: [Date]

1. Financing Terms

Seller agrees to finance [Amount] of the purchase price (with Buyer's down payment of [Amount] paid at closing), at an interest rate of [Rate]% per year, amortized over [Term], with [monthly] payments of [Amount].

2. Balloon Payment (if applicable)

[ ] The full remaining balance is due in a balloon payment on [Date], [Number] years after closing. [ ] No balloon payment — the loan fully amortizes over the stated term.

3. Security

This loan is secured by a [Mortgage/Deed of Trust] on the property, recorded at closing, giving Seller the right to foreclose if Buyer defaults.

4. Insurance and Taxes

Buyer will maintain property insurance naming Seller as loss payee (to the extent of Seller's interest) and will pay property taxes when due.

5. Due-on-Sale

If Buyer sells or transfers the property before the loan is paid in full, the remaining balance becomes immediately due, unless Seller agrees otherwise in writing.

6. Default

Buyer is in default if any payment is more than [Number] days late. Upon default, Seller may pursue foreclosure per applicable state law.

7. Existing Mortgage (if any)

[If Seller still has an existing mortgage on the property, disclose it and address any "due on sale" risk it creates for Seller's own lender.]

Seller: ______________________ Date: ____________ Buyer: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. In the US, seller financing on a residential property is subject to the Dodd-Frank Act's ability-to-repay rules unless the seller qualifies for a limited exemption — a seller who finances more than a few properties per year, or doesn't meet the exemption criteria, may need to comply with mortgage originator requirements they wouldn't expect.*