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The Owner Finance Contract serves as a crucial alternative financing mechanism in the Nigerian property market, particularly valuable when traditional bank financing is either unavailable or undesirable. This document is typically used when a property owner is willing to act as a lender, allowing the buyer to make payments directly to them instead of a bank. The agreement must comply with Nigerian federal and state property laws, including the Land Use Act of 1978, and contains detailed terms about the property transfer, financing arrangements, security provisions, and payment obligations. It's particularly relevant in both residential and commercial property transactions where traditional mortgage financing isn't suitable. The document includes comprehensive provisions for protecting both parties' interests, ensuring clear title transfer procedures, and establishing remedies in case of default.

1. Parties: Identification of the Property Owner/Seller (Financier) and the Buyer (Borrower), including full legal names, addresses, and contact information

2. Background: Context of the transaction, including property owner's willingness to sell and finance the property, and buyer's desire to purchase using owner financing

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Down Payment, Finance Amount, Interest Rate, and Monthly Payments

4. Property Description: Detailed legal description of the property being sold, including address, boundaries, and registration details

5. Purchase Price and Financing Terms: Total purchase price, down payment amount, financed amount, interest rate, loan term, and payment schedule

6. Payment Terms: Detailed payment obligations including monthly payment amount, due dates, payment methods, and late payment penalties

7. Security Provisions: Details of the security interest in the property, including mortgage or charge registration requirements

8. Insurance and Maintenance: Buyer's obligations regarding property insurance and maintenance during the finance period

9. Default and Remedies: Events of default and seller's remedies, including acceleration of debt and foreclosure rights

10. Transfer of Title: Conditions for final transfer of title and process for deed registration

11. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and the property's condition

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for dispute resolution