Document background
The Owner Financed Sales Contract is a crucial document used in Philippine real estate transactions where traditional bank financing is either not preferred or not available. This type of agreement, regulated under Philippine law, particularly the Civil Code and Maceda Law, enables property owners to sell their property while acting as the financier, creating a direct financial relationship with the buyer. The document combines elements of both a property sale agreement and a financing arrangement, including essential details such as property description, purchase price, payment terms, interest rates, security provisions, and conditions for title transfer. It's particularly relevant in situations where buyers may not qualify for traditional bank mortgages, or where sellers wish to generate regular income through interest payments while ensuring their investment is secured by the property itself.
