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 New York Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage is a legal document used in New York State to facilitate the sale of residential properties. This contract is unique because it allows the property owner to provide financing options to the buyer, acting as both the seller and the lender. Here are some relevant keywords to describe this type of contract: 1. Owner financing: This contract allows the property owner to act as a lender and finance the purchase of the residential property themselves. This eliminates the need for a traditional mortgage from a bank or financial institution. 2. Residential property: The contract specifically applies to the sale of residential properties, such as houses, apartments, or condominiums. It does not include commercial properties. 3. Note: The contract includes provisions for a promissory note, which is a legal document that outlines the details of the loan, including the amount borrowed, interest rate, payment schedule, and any other terms agreed upon between the parties. 4. Purchase money mortgage: This type of mortgage is used when the property owner finances the purchase and secures the loan using the property itself as collateral. The contract will include provisions for the purchase money mortgage, including the terms and conditions surrounding the mortgage. 5. Installment payments: Instead of a lump sum payment, the buyer agrees to make regular installment payments to the seller, as outlined in the promissory note. This allows the buyer to spread out the cost of the property over time. Different types or variations of this contract may include: 1. Contract length: The contract may specify a fixed term for the loan, such as 5, 10, or 15 years, after which the buyer must pay off the remaining balance in full. 2. Interest rate: The contract may outline a fixed interest rate for the loan, or it may include provisions for an adjustable rate that can change over time. 3. Down payment: The contract may require the buyer to make a down payment towards the purchase price upfront. The down payment amount is typically negotiated between the parties and can vary. 4. Balloon payment: Some contracts may include a provision for a balloon payment, where the buyer must pay off the remaining balance in one large payment after a certain period of time. 5. Default and foreclosure: The contract will outline the consequences of defaulting on the loan, including any late fees or penalties, as well as the procedures for foreclosure if the buyer fails to meet their payment obligations. Overall, the New York Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage provides an alternative financing option for buyers and offers flexibility to both parties involved in the transaction. It is crucial for all parties to understand and adhere to the terms and conditions specified in the contract to ensure a smooth and legally binding transaction.
