This is an addendum to an earnest money contract between the parties concerning property identified within the addendum. The addendum states that the promissory note described in the earnest money contract, payable by the buyer to the order of the seller, shall be payable at the place designated by the payee. The lien securing payment of the note will be inferior to any lien securing any superior note described in the contract. The addendum also includes the following topics: payment methods, deed of trust, and cross-default.
The Plano Texas Seller Financing Addendum is a legal document that outlines the terms and conditions for seller financing in real estate transactions within the city of Plano, Texas. Seller financing, also known as owner financing or seller carry back, occurs when the seller acts as the lender and provides financing to the buyer. In most cases, the Plano Texas Seller Financing Addendum is an attachment to the purchase contract and serves to supplement and modify the existing terms of the agreement. It is important for both parties, the seller and the buyer, to understand and agree upon the specifics of seller financing before proceeding with the transaction. The Plano Texas Seller Financing Addendum typically covers essential aspects such as the loan amount, interest rate, repayment terms, and any other conditions agreed upon by both parties. Additionally, it may outline the consequences if the buyer fails to make timely payments or defaults on the loan. There are various types of Plano Texas Seller Financing Addendums that can cater to different situations and requirements. These may include: 1. Fixed-Rate Seller Financing Addendum: This type of addendum sets a fixed interest rate, meaning the interest remains the same throughout the loan term. It offers stability for both the buyer and the seller, as the monthly payments remain consistent. 2. Adjustable-Rate Seller Financing Addendum: With this addendum, the interest rate is subject to change based on a predetermined index, such as the prime rate or Treasury bill rate. The interest may adjust periodically, typically after a specified initial period, and is often capped to protect the buyer from drastic increases. 3. Balloon Seller Financing Addendum: A balloon payment refers to a lump sum payment that becomes due at the end of the loan term. This type of addendum may be suitable for buyers who expect to have the means to make a large payment in the future, perhaps from the sale of another property or an anticipated influx of funds. 4. Partial Seller Financing Addendum: In certain cases, the seller may agree to finance only a portion of the purchase price. This addendum outlines the terms for the seller-financed portion of the transaction, while the remaining amount is typically secured through traditional financing methods, such as a mortgage or bank loan. Regardless of the specific type, the Plano Texas Seller Financing Addendum is a legally binding document that safeguards the interests of both the buyer and the seller when engaging in a seller financing arrangement. It is recommended to consult with a real estate attorney or a qualified professional to ensure its accuracy and compliance with local laws and regulations.The Plano Texas Seller Financing Addendum is a legal document that outlines the terms and conditions for seller financing in real estate transactions within the city of Plano, Texas. Seller financing, also known as owner financing or seller carry back, occurs when the seller acts as the lender and provides financing to the buyer. In most cases, the Plano Texas Seller Financing Addendum is an attachment to the purchase contract and serves to supplement and modify the existing terms of the agreement. It is important for both parties, the seller and the buyer, to understand and agree upon the specifics of seller financing before proceeding with the transaction. The Plano Texas Seller Financing Addendum typically covers essential aspects such as the loan amount, interest rate, repayment terms, and any other conditions agreed upon by both parties. Additionally, it may outline the consequences if the buyer fails to make timely payments or defaults on the loan. There are various types of Plano Texas Seller Financing Addendums that can cater to different situations and requirements. These may include: 1. Fixed-Rate Seller Financing Addendum: This type of addendum sets a fixed interest rate, meaning the interest remains the same throughout the loan term. It offers stability for both the buyer and the seller, as the monthly payments remain consistent. 2. Adjustable-Rate Seller Financing Addendum: With this addendum, the interest rate is subject to change based on a predetermined index, such as the prime rate or Treasury bill rate. The interest may adjust periodically, typically after a specified initial period, and is often capped to protect the buyer from drastic increases. 3. Balloon Seller Financing Addendum: A balloon payment refers to a lump sum payment that becomes due at the end of the loan term. This type of addendum may be suitable for buyers who expect to have the means to make a large payment in the future, perhaps from the sale of another property or an anticipated influx of funds. 4. Partial Seller Financing Addendum: In certain cases, the seller may agree to finance only a portion of the purchase price. This addendum outlines the terms for the seller-financed portion of the transaction, while the remaining amount is typically secured through traditional financing methods, such as a mortgage or bank loan. Regardless of the specific type, the Plano Texas Seller Financing Addendum is a legally binding document that safeguards the interests of both the buyer and the seller when engaging in a seller financing arrangement. It is recommended to consult with a real estate attorney or a qualified professional to ensure its accuracy and compliance with local laws and regulations.
