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 Round Rock Texas Seller Financing Addendum is a legal document that outlines the terms and conditions of a seller-financed real estate transaction in Round Rock, Texas. Seller financing, also known as owner financing, is a type of mortgage in which the seller directly provides financing to the buyer, eliminating the need for a traditional bank loan. In Round Rock, several types of addenda may be used depending on the specific terms agreed upon between the buyer and seller. These include: 1. Amortization Schedule: This addendum specifies the payment schedule, interest rate, and duration of the loan. It outlines the principal balance, interest paid, and remaining balance to be paid by the buyer over the agreed-upon period. 2. Balloon Payment: In some cases, the seller and buyer may agree to a balloon payment addendum. This addendum stipulates that a large sum, or the "balloon payment," is due at the end of a specified period, usually within 3 to 5 years. This allows the buyer to make smaller monthly payments while delaying a substantial payment until later, giving them time to build their credit or secure alternative financing. 3. Terms and Conditions: This addendum clarifies any additional conditions or requirements agreed upon by both parties. It may include details about property inspections, repairs, or specific contingencies that need to be met before the closing date. This addendum ensures that all terms and conditions are explicitly defined and agreed upon. 4. Default and Remedies: This addendum addresses the consequences in case of default by either party. It outlines the steps to be taken, such as the issuing of notices, opportunities to cure defaults, and potential resolutions. 5. Prepayment Penalty: This addendum can be included when the parties agree on terms that penalize the buyer for paying off the loan early. It specifies the prepayment penalty amount or percentage and the conditions under which it applies. Overall, the Round Rock Texas Seller Financing Addendum is a crucial legal document that protects the interests of both the seller and the buyer in a seller-financed real estate transaction. It ensures that all agreed-upon terms and conditions are clearly defined, helping to facilitate a smooth and secure transaction.
