This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Pennsylvania Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage is a legally binding document that outlines the terms and conditions of a real estate transaction in Pennsylvania. This contract is specifically designed for situations where the seller is financing the purchase of the residential property and includes provisions for a note and a purchase money mortgage. In this type of contract, the seller acts as the lender and provides the buyer with financing to purchase the property. This can be an attractive option for buyers who may have difficulty obtaining traditional bank financing or who wish to take advantage of the flexibility offered by owner financing. The Pennsylvania Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage typically includes important details such as the purchase price, financing terms, and a description of the property. It also includes provisions regarding the payment schedule, interest rate, and any late fees that may be applicable. One common variation of this contract is the "Balloon Payment" provision. This provision allows the buyer to make smaller monthly payments towards the purchase price for a specified period of time, with a larger lump sum payment (the balloon payment) due at the end of the term. Another variation is the "Interest-Only" provision, where the buyer only pays the interest on the loan for a certain period, with the principal amount remaining unchanged. It is important to note that the Pennsylvania Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage should be drafted by a real estate attorney to ensure compliance with the state's laws and regulations. The contract should clearly outline the rights and responsibilities of both the buyer and seller, and provide protection for both parties. Overall, this contract offers a flexible financing option for buyers and sellers in Pennsylvania when traditional bank financing may not be readily available. It allows buyers to acquire residential property through a seller-financed transaction, while including provisions for a note and purchase money mortgage.
