Re: What is needed to buy property with owner financing

This is a closing like any other. The best way to handle this matter would be for the Seller to execute a Warranty Deed in favor of the Buyer and the Buyer to execute a Mortgage Deed in favor of the Seller. All other indicia of the transfer of title including a title search, title policy and pertinent documents should be done. Another method would be to transfer the property by an Agreement for Deed although most real estate attorneys frown on this method.

The transfer of title can be handled by a competent attorney who will protect the interests of both parties without sacrificing the interest of either party, thus saving on the cost involved.

Scott R. Jay, Esq. 305-249-8000

Re: What is needed to buy property with owner financing

I agree with Mr. Jay. The typical way

would be to obtain a deed and give back

a mortgage. I highly recommend you also

obtain a title insurance policy. The Florida

Bar has approved a standard purchase and

sale agreement for residential property.

I suggest you consult an attorney before

entering into any such contract.

Re: What is needed to buy property with owner financing

You will need to go to a closing just like you would under any other circumstance. A title company should be employed by you to verify that there are no liens, easements, or encroachments on the property. Thereafter, a warranty deed and mortgage papers can be exchanged at closing to protect all sides.

Feel free to contact me (305-373-5313) if you should have any further questions.

Re: What is needed to buy property with owner financing

You need to hire a lawyer or title company to do the same type of things that would be done if a bank was providing financing (e.g., title search, title insurance commitment, lien search, survey to determine if there are any encroachments, etc.). At the closing, a deed, promissory note and purchase money mortgage should be executed, along with a closing or settlement statement that sets forth all the money involved and exchanged in the deal. You should obtain a title insurance policy and request that you be charged the lowest promulgated rate for such policy, which has a one-tiime premium collected at closing.

The interest rate (fixed, variable) and how the payments under the promissory note (balloon payment?) are items that you may be able to negotiate good terms for with the seller. Seek the advice of counsel or a title company. Good luck.