Owner Finance Real Estate Contract Template for United States

The Owner Finance Real Estate Contract serves as an alternative financing solution when traditional mortgage options are not suitable or available. This document is commonly used in situations where buyers may not qualify for conventional bank financing, or sellers wish to generate ongoing income through interest payments. It provides a comprehensive framework for both the property sale and financing arrangement, ensuring compliance with U.S. federal regulations and state-specific requirements. The contract typically includes detailed terms about the property, purchase price, payment schedule, interest rates, security arrangements, and default provisions.

1. Parties: Identifies seller/lender and buyer/borrower with legal names and addresses

2. Background: States the intent of owner financing and basic property details

3. Definitions: Defines key terms used throughout the contract

4. Property Description: Legal description of the property being sold

5. Purchase Price and Payment Terms: Details of total price, down payment, interest rate, and payment schedule

6. Security Interest: Establishes lien on property and security arrangements

7. Default and Remedies: Specifies what constitutes default and available remedies

8. Insurance and Taxes: Requirements for property insurance and tax payments