Creating the ultimate Seller / Owner Financing Checklist

[Zak Cooper]

Hey BP peeps, 

Newbie here, in discussions for my first Seller Financing deal!

Apologies in advance if there is a forum post similar to this, but I couldn't find one with a checklist-style format. As such, I am asking if there is anything you vets out there would add to this checklist. The areas I am most clueless about are where the attorney/notary gets involved to authorize the transaction and make things legally binding. Thanks!

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SEE MY CHECKLIST BELOW:

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1. Purchase Agreement:

- [ ] Property Description

- [ ] Purchase Price

- [ ] Down Payment

- [ ] Financing Terms (Interest Rate, Repayment Schedule)

- [ ] Closing Date

- [ ] Contingencies (Inspection, Appraisal, etc.)

2. Promissory Note:

- [ ] Principal Amount

- [ ] Date

- [ ] Payments Schedule

- [ ] Interest Rate

- [ ] Prepayment Terms

- [ ] Default Consequences

3. Mortgage / Deed of Trust:

- [ ] Property Description

- [ ] Mortgage Amount

- [ ] Interest Rate

- [ ] Repayment Schedule

- [ ] Default Terms

4. Title Insurance Policy:

- [ ] Coverage Details

- [ ] Policy Amount

- [ ] Effective Date

- [ ] Exclusions

5. Closing Statement:

- [ ] Purchase Price

- [ ] Down Payment

- [ ] Closing Costs

- [ ] Total Due

- [ ] Payment Method

6. Credit Check or Financial Information:

- [ ] Obtain and review the buyer's credit report or financial information.

7. Legal Assistance:

- [ ] Seek legal advice to ensure compliance with laws and regulations.

8. Insurance:

- [ ] Buyer obtains property insurance.

- [ ] Seller may require additional insurance coverage.

9. Due Diligence:

- [ ] Conduct property inspections.

- [ ] Obtain appraisals, if necessary.

- [ ] Review any other relevant documents or information.

10. Agreement on Default Procedures:

- [ ] Define default conditions.

- [ ] Agree on default consequences and procedures.

11. Communication and Documentation:

- [ ] Thoroughly copy, print, and notarize documents and all agreements/discussions.

Thanks BP.

[Chris Seveney]

If it’s owner occupied vs non owner occupied that will make a huge difference in the docs as well will have more documentation such as personal guarantee, assignment of rents and leases along with confession of judgment language in the docs.