This form is an Asset Purchase Agreement. The buyer agrees to purchase from the seller certain assets which are listed in the agreement. The form also provides a listing of certain assets which will be excluded from the sale. The form must be signed in the presence of a notary public.
Sale Of Business Assets Agreement With Seller Financing In Suffolk
Category:
State:
Multi-State
County:
Suffolk
Control #:
US-00418
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Selling an Owner-Financed Home Market Analysis: Evaluate the property's fair market value based on a market analysis. Legal Documentation: Draft all legal documents, including the financing agreement, depending on the terms of the transaction. Finding a Buyer: Assuming you need to sell the property outright.
Disadvantages of seller financing Buyers still vulnerable to foreclosure if seller doesn't make mortgage payments to senior financing. No home inspection/PMI may result in buyer paying too much for the property. Higher interest rates and bigger down payment required. Seller faces risks if the borrower defaults on ...
If the seller charges interest on the financing provided, the interest income received is typically subject to income tax. The seller must report this interest income on their tax return.
An essential first step for the seller is to conduct due diligence concerning the financial qualifications of the buyer, including the buyer's background, credit record, management experience, ownership of similar properties, personal assets and character.
Using seller financing presents both opportunities and challenges. The potential pros are compelling: a widened pool of potential buyers, perceived lower risk leading to potentially higher sale prices, substantial interest income, a streamlined due diligence process and potential tax benefits.
First and foremost, it is typically the buyer's responsibility — not yours as the seller — to draft the Definitive Agreement. This will not begin until both the buyer and the seller sign a Letter of Intent indicating their intention to buy/sell the business.