Agreement for deed/seller financing

[Joe Hughes]

I have an owner of a 6-unit Apartment Building who is willing to do some sort of Seller Financing arrangement with me.  I have offered $0 down, 24 monthly payments, and then a balloon payment after the 24th month ( which will allow time for a rental history to get established, and thus a refinance).

 I have a couple of specific questions:

1. He told me initially that it was owned Free and Clear, but he clarified later that he does have a Commercial Line of Credit attached to it. My concern is the "due on sale" clause. Would a Commercial LOC still have this clause, or does it matter as long as he keeps making monthly payments? ( I would insist on a 3rd party escrow company making payments on his behalf).

2.  His concern is that I could walk away at any time and not have any commitments.  I have explained to him that although it is seller financing, he still has a note from me.  I simply cannot walk away without any consequences.  Does anyone have a talk track along these lines?  He also does not feel that my name should be on the deed until that balloon payment on month 24.  I am not knowledgable enough to talk him through this part.

Any feedback would be greatly appreciated.