Who Files the Seller Financing Addendum?
The Seller Financing Addendum is a part of the Real Estate Purchase Contract. The seller and the purchaser sign this document if the seller agrees to finance the whole price of the real estate purchase or its part. The property owner may also loan the purchaser the money that is necessary for buying the real estate. The owner acts in this case as a bank.
What is the Seller Financing Addendum for?
The Seller Financing Addendum is used for the confirmation of the fact that the owner agrees to provide financing for the buyer who is going to purchase the property of the seller. This helps avoid involving an outside lender for facilitating the sale. This document is a very flexible way to agree on the purchase of the property as the parties must only negotiate the terms of the repayment.
When is the Seller Financing Addendum Due?
The addendum remains in force for the period of the purchase until the whole payment is made.
Is the Seller Financing Addendum Accompanied by Other Forms?
First, the Contract of the Real Estate Purchase must be attached. Prepare the Promissory Note that contains the detailed description of the loan: amount, interest rate, payment timing, escrow payments, payment recipient, maturity date, prepayment, late changes and the default interest. The Deed of Trust is one more necessary document. It contains additional obligations and incorporates the terms of the Promissory Note.
What Information should I Include in the Seller Financing Addendum?
The addendum contains a lot of information. You must provide the following details in the document:
- Offer reference date;
- Names of seller and buyer;
- Address of the property;
- Credit terms;
- Payment details.
It is necessary to date and sign the addendum after all information is provided.
Where do I Send the Seller Financing Addendum?
After completion, send the addendum to the Utah Real Estate Commission and Utah Attorney General Office.