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Real Estate Purchase Agreement With Seller Financing Template for England and Wales

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Key Requirements PROMPT example:

Real Estate Purchase Agreement With Seller Financing

"I need a Real Estate Purchase Agreement With Seller Financing for a commercial property sale worth £2.5 million, where the seller will finance 70% of the purchase price over 15 years, with completion planned for March 2025."

Document background
A Real Estate Purchase Agreement With Seller Financing is used when a property seller agrees to finance the buyer's purchase directly, rather than the buyer obtaining traditional mortgage financing. This arrangement is particularly useful when buyers face challenges securing conventional mortgage loans or when sellers wish to generate ongoing income through interest payments. The agreement, governed by English and Welsh law, must comply with both property and financial services regulations, including detailed terms of sale, financing conditions, security arrangements, and default provisions.
Suggested Sections

1. Parties: Identification and details of buyer and seller

2. Background: Context of the transaction and property details

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property being sold

5. Purchase Price: Total purchase price and payment structure

6. Financing Terms: Details of seller financing arrangement including interest rate, term, and payment schedule

7. Completion: Process and requirements for completing the sale

8. Title and Registration: Provisions regarding transfer of title and registration requirements

Optional Sections

1. Property Inspection: Terms regarding property inspection rights and period when buyer requests inspection period

2. Insurance Requirements: Specific insurance obligations during financing period when additional insurance protection is needed

3. Early Repayment Terms: Conditions for early repayment of seller financing when early repayment options are offered

4. Default Provisions: Consequences of default on financing terms when specific default terms are required

Suggested Schedules

1. Property Title Documents: Copies of relevant title documents and plans

2. Payment Schedule: Detailed amortization schedule for seller financing

3. Property Inventory: List of included fixtures and fittings

4. Property Searches: Results of local authority and other relevant searches

5. Security Documentation: Forms of security for the seller financing arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Primary legislation governing fundamentals of land law, requirements for land contracts, and legal estates and interests in land in England and Wales

Land Registration Act 2002: Covers registration requirements, priority of interests, and protection of title for real estate transactions in England and Wales

Consumer Credit Act 1974: Regulates credit arrangements including seller financing, providing consumer protection provisions and credit documentation requirements

Financial Services and Markets Act 2000: Governs regulated financial activities and consumer protection in financial arrangements, relevant for seller financing aspects

Law of Property (Miscellaneous Provisions) Act 1989: Contains Section 2 requiring contracts for sale of land to be in writing and meet specific formality requirements

Stamp Duty Land Tax Act 2003: Governs tax implications and payment requirements for real estate transactions in England and Wales

Money Laundering Regulations 2017: Sets out due diligence requirements and identity verification procedures for property transactions

Housing Act 2004: Establishes property conditions and health and safety requirements for residential properties

Unfair Contract Terms Act 1977: Ensures contract fairness and provides consumer protection in contractual relationships

Consumer Rights Act 2015: Regulates fairness of terms and transparency requirements in consumer contracts

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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