The Owner Finance Contract is a specialized legal instrument used in Canadian real estate transactions where traditional bank financing is either unavailable or undesired. This document serves as both a purchase agreement and a financing agreement, enabling property sellers to act as lenders while maintaining security interest in the property until full payment is received. It is particularly relevant in situations involving private sales, unique properties, or buyers who may not qualify for conventional mortgages. The agreement must comply with Canadian federal regulations, including the Interest Act and Criminal Code provisions regarding interest rates, as well as provincial real estate and consumer protection laws. Key components include purchase terms, payment schedules, security arrangements, maintenance requirements, default provisions, and conditions for final title transfer.

1. Parties: Identifies and provides full legal names and addresses of the seller-financier and buyer-borrower

2. Background: Establishes the context of the agreement, including the seller's ownership of the property and the buyer's desire to purchase with owner financing

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Property Description: Detailed legal description of the property being sold and financed

5. Purchase Price and Financing Terms: Specifies the total purchase price, down payment, financed amount, interest rate, and payment terms

6. Payment Schedule: Details the regular payment amounts, due dates, and payment methods

7. Security Interest: Establishes the seller's security interest in the property, similar to a traditional mortgage

8. Insurance and Property Tax Requirements: Outlines the buyer's obligations regarding property insurance and tax payments

9. Property Maintenance and Use: Specifies the buyer's responsibilities for maintaining the property and any restrictions on its use

10. Default and Remedies: Defines what constitutes default and the seller's available remedies, including foreclosure rights

11. Transfer of Title: Explains when and how final title transfer occurs

12. Representations and Warranties: States the parties' representations regarding the property and their authority to enter the agreement

13. Governing Law: Specifies that Canadian law and the applicable provincial law govern the agreement

14. Notice Provisions: Details how and where formal notices between parties must be delivered

15. Execution: Signature blocks and execution requirements