Virginia Seller's Disclosure of Financing Terms for Residential Property in connection with Contract or Agreement for Deed a/k/a Land Contract
What is this form?
The Seller's Disclosure of Financing Terms for Residential Property is a key document used in transactions involving a Contract for Deed, also known as a Land Contract. This form informs the purchaser about the financial details of the property being sold, including the total purchase price, interest rate, payment schedule, and late charges. Its purpose is to ensure transparency between the seller and purchaser, distinguishing it from standard purchase agreements by focusing specifically on financing terms.
What’s included in this form
- Purchase price of the property
- Interest rate charged under the contract
- Total interest amount due for the contract term
- Overall principal and interest payment total
- Details on late charges
- Information on prepayment penalties
When to use this form
This form should be used when a seller and purchaser are entering into a Contract for Deed arrangement to formalize the financing terms related to the sale of a residential property. It is essential for clarity and protection of both partiesâ interests before finalizing the contract.
Intended users of this form
- Home sellers engaged in a sale via Contract for Deed
- Home purchasers wishing to understand financing terms before signing
- Real estate agents facilitating such transactions
How to prepare this document
- Identify the parties involved in the transaction (seller and purchaser).
- Clearly specify the property in question, including address.
- Fill in the purchase price of the property.
- Provide the interest rate that will be applied under the contract.
- Detail the total amount of principal and interest to be paid under the contract.
- Indicate any late charges and information about prepayment penalties.
- Ensure all parties sign and date the document.
Does this form need to be notarized?
This document requires notarization to meet legal standards. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Failure to specify all financial terms clearly.
- Not signing and dating the form by all parties involved.
- Inaccurate property details leading to confusion.
Why use this form online
- Convenience of obtaining the form instantly via download.
- Editability to customize details according to your transaction.
- Reliability from forms created by licensed attorneys.
Legal use & context
- Helps prevent disputes by ensuring all financial terms are disclosed upfront.
- Serves as a legal record of the agreement between parties regarding financing.
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FAQ
Although there are some basic disclosures required of sellers under federal law, Virginia law does not require sellers to disclose much information about their property at all.
A contract for deed is a legal agreement for the sale of property in which a buyer takes possession and makes payments directly to the seller, but the seller holds the title until the full payment is made.
You can sell your house on a land contract with an outstanding loan balance if your lender agrees and if the contract doesn't have a due-on-sale clause.
The Virginia Residential Property Disclosure act is a statutory scheme enacted by the General Assembly of Virginia that requires a seller of real estate in Virginia to furnish to a purchaser a residential property disclosure statement for the buyer to beware of certain matters that may affect the buyer's decision to
One such alternative is the contract for deed. In a contract for deed, the purchase of property is financed by the seller rather than a third-party lender such as a commercial bank or credit union.
In many states, the law requires a home seller to disclose to a potential buyer any problems or defects known about the home. In Virginia, however, the seller is obligated only to provide the buyer with a Residential Property Disclosure Statement, (Code of Virginia § 55-519), which contains minimal information.
Virginia is a caveat emptor (buyer beware) state. This essentially means that the responsibility for conducting a thorough inspection of the property that is contemplated to be purchased is on the Buyer.
You will need to include information about all appliances in the home, including which are included in the sale as well as whether they are operational. You will also need to disclose any room additions, damage, or neighborhood noise problems.
