Verbal Acceptance of Offer: Owner-Financing Questions

[William Donaldson]

I recently made a verbal offer to the seller of a SFH that was accepted. This is my third purchase, but the first time I will be utilizing seller-financing to acquire a property. To be perfectly honest, I expected the seller to prefer the all-cash offer, but I am thrilled she is accepting the following offer:

Purchase price:  $40,000

Down payment:  $2,000

Seller Financing:  $38,000 first-lien mortgage fully amortizing over 15 years at a 5.0% fixed interest rate, resulting in monthly payments of $300.50

The questions I have are as follows:

-The purchase contract I am working on notes in the "Method of Payment" that there will be $2k down and a $38k mortgage to be held by seller.  I am working on the addendum that goes into more detail.  Exactly how much detail do I need in the addendum regarding the mortgage?  I will use a mortgage drawn up by my lawyer, but I do not know how much detail about the mortgage needs to be contained in the purchase contract/addendum.  

-Is it customary for the seller/mortgagee to send an annual statement that includes the amortization schedule, amount of interest/principal paid during the year, remaining principal, etc. to the mortgagor in an owner-financing arrangement?  If so, would it be acceptable for the statement to be managed by a third-party (lawyer/accountant) and signed by both parties annually?  I would like to reduce the burden on the seller while at the same time covering my bases.

-How is the Satisfaction of Mortgage document typically handled in this situation?  Since it is a standard form, I assume when we arrive at that point we can both sign the document in the presence of a notary.  Or would it be more wise to do so with the assistance and guidance of a RE lawyer?

Thanks!