Posted on: 06th Sep, 2009 06:34 am
do you have to charge interest on a contract for deed? such as 27,500 over a five yr. term.
Hi Guest!
Welcome to forums!
Contracts for Deed is used when you are planning to owner finance a property. Both, the owner and the buyer enter into a contract wherein the owner agrees to give the buyer a deed after the buyer pays the owner a stipulated amount of money. As per the contract, it requires the buyer to make payments over time with an interest payable on the unpaid balance. So, if you are the seller of the property, you can charge interest for it. However, the terms and conditions of paying off the mortgage dues should be written in the owner financing contract.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Contracts for Deed is used when you are planning to owner finance a property. Both, the owner and the buyer enter into a contract wherein the owner agrees to give the buyer a deed after the buyer pays the owner a stipulated amount of money. As per the contract, it requires the buyer to make payments over time with an interest payable on the unpaid balance. So, if you are the seller of the property, you can charge interest for it. However, the terms and conditions of paying off the mortgage dues should be written in the owner financing contract.
Feel free to ask if you've further queries.
Sussane