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Seller Financing Purchase Agreement
"I need a Seller Financing Purchase Agreement for a commercial property sale in Ontario, where I'm providing 70% financing over 15 years, with monthly payments starting March 2025, and I want to include special provisions for early repayment without penalty after 5 years."
1. Parties: Identification of the Seller and Buyer, including full legal names and addresses
2. Background: Context of the transaction, including property description and parties' intention to enter into a seller-financed arrangement
3. Definitions: Key terms used throughout the agreement, including financial, property, and legal terminology
4. Purchase and Sale: Core agreement to purchase and sell the property, including legal description and included/excluded items
5. Purchase Price: Total purchase amount and breakdown of payment components
6. Financing Terms: Detailed structure of seller financing, including principal amount, interest rate, payment schedule, and amortization period
7. Security: Description of security interests, including mortgage or charge on the property
8. Closing and Possession: Closing date, possession details, and conditions for transfer
9. Representations and Warranties: Standard and specific declarations by both parties regarding property, authority, and capacity
10. Covenants: Ongoing obligations of both parties, including property maintenance and insurance requirements
11. Default and Remedies: Events of default and available remedies for both parties
12. Registration and Transfer: Requirements for documenting and registering the sale and security interests
13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Property Condition: Used when specific property conditions need to be addressed or when property is sold 'as-is'
2. Due Diligence: Include when buyer requires specific investigation periods or conditions
3. Business Assets: Required when the sale includes business assets along with real property
4. Environmental Matters: Include for properties with potential environmental concerns or requirements
5. Property Management: Used when agreement includes terms about interim or ongoing property management
6. Prepayment Provisions: Include when parties want to specify terms for early payment of the financing
7. Third Party Consents: Required when transaction requires approvals from other parties
8. Tax Matters: Include when specific tax arrangements or implications need to be addressed
1. Schedule A - Property Description: Detailed legal description of the property and included fixtures
2. Schedule B - Payment Schedule: Detailed amortization schedule showing payment dates, amounts, and interest calculations
3. Schedule C - Permitted Encumbrances: List of approved liens, easements, or other encumbrances that will remain on title
4. Schedule D - Property Condition Report: Detailed assessment of property condition at time of sale
5. Schedule E - Included Chattels: Itemized list of personal property included in the sale
6. Appendix 1 - Form of Promissory Note: Standard form promissory note documenting the debt
7. Appendix 2 - Form of Mortgage/Security Agreement: Standard form mortgage or security documentation
8. Appendix 3 - Insurance Requirements: Detailed specifications for required property and liability insurance
Authors
Real Estate
Commercial Property
Residential Property
Financial Services
Property Development
Construction
Small Business
Agriculture (for farm properties)
Retail (for commercial properties)
Industrial
Legal
Real Estate
Finance
Risk Management
Business Development
Property Management
Asset Management
Investment
Compliance
Operations
Real Estate Lawyer
Property Manager
Real Estate Developer
Commercial Property Manager
Chief Financial Officer
Real Estate Investment Manager
Business Development Manager
Contract Administrator
Risk Manager
Financial Controller
Real Estate Agent
Mortgage Specialist
Property Investment Advisor
Asset Manager
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