Where to find a seller financing contract/ How to fill it out- Georgia

Question

The title sums my question. 
I'm assuming its not the same Georgia State Purchase and Sale contract but with special clauses. I'm not sure that's why I'm asking.

For the purpose of purchasing a property via seller financing.
 
Any help and guidance would be greatly appreciated.

Aaron Mazzrillo · Answer

Not sure I've ever seen a standard form, which it sounds like you're kind of fishing around for. I've written all my seller financed contracts myself. Just wrote one a few days ago. Quite simple:

Offer to Purchase Real Property Located At
Property address

I, (your name/entity) offer to purchase the above described real property under the following terms and conditions:

1. Purchase price to be ________ ($X,XXX) paid as follows:
     A. Cash down payment of $ (or seller to net $XXX cash at closing)
    B. seller will carry a purchase money note secured by property in favor of seller in the amount of $X,XXX with monthly payments of $XXX with X% interest (if applicable?), fully amortized over XXX months.

2. verbage about who pays what and name of title & escrow

3. condition statements such as 'Buyer agrees to purchase property in its present As-Is condition' or 'Buyer has 7 days to inspect and approve of condition of property.'

4. Escrow to be ____ days or less.

5. Any contingency you want to add. I don't use them. If I make an offer, I hope it gets accepted.

6. Buyers exact vesting to be determined in escrow. (this is how I assign contracts.)

7. Some legal verbage about this being a legal and enforceable contract.

8. I recently started putting "This offer expires in 7 calendar days from date signed by buyer." Not sure if it is working out yet or not. Still testing.

__________                      __________
Buyer                                 Date

__________                      ___________
Seller                                Date

My phone, fax, email.

Copy and paste it to Word, clean it up, and  you're good to go.

Joel Owens · Answer

In Georgia we use closing attorneys to conduct sales. We only typically use title for searches and underwriting insurance policies etc.

For seller financing it gets down to how complex the transaction is.

1. Are you putting any money down??
2. Does the seller own free and clear??
3. Are you doing subject to or a wrap situation that creates insurance issues among other things??
4.Is the seller asking for a corp guarantee or your personal guarantee on the loan??
5. Are you using a third party servicer to make sure the first mortgage on a wrap is getting paid each month and that the seller isn't in default and just taking the money??

These questions and many, many more come into play with each transaction.

I would say personally to know your exit strategies ahead of time and do not rely on just one but have multiple A,B,C plan etc.

My opinion is if you are guaranteeing a loan and putting down considerable money or both you really need an attorney to help if the transaction is complex.

I will not put my capital at risk without getting counsel but that is just me.

No legal advice.

Account Closed · Answer

I don't know contract law or my state specific laws when it comes to owner financing so I don't mind giving a couple hundred to someone who does. If you do know it then by all means write them yourself.

I also thought he was talking about the actual purchase contract (contract for deed or such), not the pre-purchase contract like you have written up. For that I agree, no need for an attorney, fill in the blank forms are easy to come by.

Account Closed · Answer

Find an attorney that specializes in real estate and they will be able to draw up a contract for you. The couple hundred it will cost is cheap insurance that everything is written up correctly and your well protected.

Aaron Mazzrillo · Answer

I've been doing this for 10 years and have never found any use for an attorney. Not sure why people like to give their money away to the only people legally allowed to lie in court??

Aaron Mazzrillo · Answer

My spaces didn't appear in the above post. The bottom is supposed to have a line with "Buyer" under some white space, then another line with "Date" under it. Same goes for seller.

David Beard · Answer

You can purchase state specific real estate forms for everything imaginable at USLegal.com and other similar sites.

J Scott · Answer

You probably also want to contact the Dept of Banking and Finance to determine if the specific transaction violates any SAFE ACT regulations in Georgia.  In many situations, seller financing violates state law.  And even in those cases where it doesn't violate state law, there are some very specific requirements for paperwork and documentation.

Tom Goans · Answer

Allen Herrera,

Laws are unique to EVERY state. The unique real estate laws of a particular state govern all real estate transactions in that state and that state alone.

It would be extremely wise to seek legal advice from the only people who have legal authority to provide legal advice. That is an attorney where the property is located.

Legal advice given by an unlicensed person is ILLEGAL.

Hire an attorney and ask if this is not correct. Or call the Bar Association in that state to verify my post.

If nothing else, an attorney will be able to review your unique situation, offer legal options that adress legal requirements and protect you as best as possible, and offer you guidance based upon your unique situation and goals. The results will be a legally binding contract in that state.

Where to find a seller financing contract/ How to fill it out- Georgia

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