Document background
The Owner Finance Purchase Agreement is a specialized legal instrument used in Indian real estate transactions where traditional bank financing is either not preferred or not available. This document is particularly relevant when sellers are willing to finance the purchase of their property, effectively acting as the lender to the buyer. It combines elements of a property sale agreement with a loan agreement, structured in compliance with Indian property and contract laws. The agreement typically includes comprehensive details about the property, purchase price, financing terms, security arrangements, and the rights and obligations of both parties. It's commonly used in situations where buyers may not qualify for conventional mortgages, need more flexible payment terms, or prefer to deal directly with the property owner. The document must adhere to specific requirements under Indian law, including proper registration and stamp duty payment in the appropriate jurisdiction.
