This Seller's Disclosure Notice of Financing Terms Contract for Deed serves as notice to Purchaser of the purchase price of property and how payments, interest, and late charges are set. This document should be completed by Seller of property and provided to the Purchaser at or before the signing of the contract for deed.
San Diego California Seller's Disclosure of Financing Terms for Residential Property in connection with Contract or Agreement for Deed, also known as a Land Contract, is a crucial document that outlines the financing terms agreed upon between the seller and the buyer. This disclosure is a legal requirement in real estate transactions in San Diego, California. It provides transparency and protects both parties by ensuring that all financing terms are clearly stated and agreed upon. There are different types of San Diego California Seller's Disclosure of Financing Terms for Residential Property, depending on the specific provisions agreed upon in the contract or agreement for deed. These may include: 1. Interest Rate: The disclosure will specify the interest rate to be charged on the outstanding balance of the purchase price. This rate will determine the cost of borrowing for the buyer and the income generated for the seller. 2. Payment Schedule: The disclosure will outline the payment schedule agreed upon, including the amount of each installment, the due dates, and any penalties for late payments. This information helps both parties plan their finances accordingly. 3. Down Payment: The disclosure will specify the agreed-upon down payment amount, which is a percentage of the purchase price that the buyer must pay upfront. This ensures clarity regarding the buyer's initial financial commitment. 4. Term of the Contract: The disclosure will state the length of the contract or agreement for deed, which represents the duration of the financing arrangement. This allows both parties to understand the timeframe and obligations associated with the agreement. 5. Balloon Payment: In some cases, the disclosure may include a provision for a balloon payment. This occurs when a large payment is due at the end of the contract or agreement for deed. Including this provision allows the parties to plan for the payment or negotiate alternative arrangements. 6. Default and Remedies: The disclosure will outline the consequences for defaulting on the financing terms, including any remedies available to the non-defaulting party. This clause helps protect both parties' interests and provides clarity on the actions that can be taken in case of default. It is important for both the seller and the buyer to carefully review and understand the San Diego California Seller's Disclosure of Financing Terms for Residential Property in connection with Contract or Agreement for Deed before signing the agreement. Seeking legal advice or guidance from a qualified real estate professional is highly recommended ensuring all terms are clear, fair, and in compliance with local laws and regulations.
