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Seller Financing Documents
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The sales contract/agreement will spell out the terms of the deal.
A lawyer will draw up the promissory note for the financing, which will be signed by both parties and recorded at the county clerk's office like any other loan document.
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@Josh Pryor In a normal Seller Financing transaction, there will be a Promissory Note that spells out the terms of the loan . The promissory note usually does not get recorded.
There will also either be a mortgage, or a deed of trust (depending which type your particular state uses). The mortgage / deed of trust actually secures the loan by making reference to the collateral (the property which the loan is for).
There could be other documents as well, such as the Deed that gives you title to the property.
All of these documents will vary from state to state.
Yes, you should definitely use an attorney on this, especially if it's your first one.
It's well worth paying a few bucks to get it done right and to learn from the experience.
It's must less expensive to do it right the first time than it is to clean things up later.
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Yes get an attorney. There are many reasons sellers like “owner financing” better rate of return than a cd, easier to sell the property, more buyer availability, push out taxes, etc. you can use Lease option paperwork, installment sale documents, note and mortgage/deed of trust to solidify the deal as discussed by @Stanley Bronstein sophisticated sellers also will help with proper documentation.
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What kind of costs are associated with that kind of paperwork when done correctly?