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김영산 님 답변
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12/11/2019 8:19:47 PM
‘is this better than traditional bank financing?’
장점 Advantages for sellers in owner (seller)-financing situations:
- Tax breaks: The seller may want to take advantage of tax laws that allow deferral of capital gain on installment sale. Instead of paying taxes on the capital gains all in that first year, the seller pay a much smaller amount as she/he receives the income. (Usually Tax breaks will only apply in case of solo seller financing for whole purchase price)
-Higher sales price with higher interest rate: Because the seller is offering the financing, the seller usually expect a higher sale price in return.
단점 Disadvantages for sellers in seller financing: the problems involved in a potential foreclosure.
Depending on whether the financing instrument is a mortgage or a deed of trust, the seller must take the 'appropriate steps' to foreclose. (The Worst-case scenario would be the total time for a judicial foreclosure proceeding could be as much as 2-4 years)
‘is there any lawyer handling these? (promissory note, title, contract and etc.,)’
계약 With assistance of real estate agents/brokers using the form, ‘SELLER FINANCING ADDENDUM AND DISCLOSURE (California Civil Code §§2956-2967); CALIFORNIA ASSOCIATION OF REALTORS (C.A.R form SFA),'
once it's completed, the‘SELLER FINANCING ADDENDUM AND DISCLOSURE (SFA)’ should be attached to the ‘purchase agreement’(C.A.R. form RPA-CA) made between the parties (buyers and sellers.)
에스크로 In escrow,
the buyer, signs both a promissory note (promising to repay the loan) and either a mortgage or a deed of trust (allowing the seller to foreclose if the buyer fail to pay). In return, the seller signs a deed transferring title to the buyer.
("most real estate law is state law" 주마다 부동산법이 많이 다를 수 가 있으므로,)
Please consult with your 캘리포니아 California licensed real estate agent/broker and ' 캘리포니아' real estate Lawyers for more information!
장점 Advantages for sellers in owner (seller)-financing situations:
- Tax breaks: The seller may want to take advantage of tax laws that allow deferral of capital gain on installment sale. Instead of paying taxes on the capital gains all in that first year, the seller pay a much smaller amount as she/he receives the income. (Usually Tax breaks will only apply in case of solo seller financing for whole purchase price)
-Higher sales price with higher interest rate: Because the seller is offering the financing, the seller usually expect a higher sale price in return.
단점 Disadvantages for sellers in seller financing: the problems involved in a potential foreclosure.
Depending on whether the financing instrument is a mortgage or a deed of trust, the seller must take the 'appropriate steps' to foreclose. (The Worst-case scenario would be the total time for a judicial foreclosure proceeding could be as much as 2-4 years)
‘is there any lawyer handling these? (promissory note, title, contract and etc.,)’
계약 With assistance of real estate agents/brokers using the form, ‘SELLER FINANCING ADDENDUM AND DISCLOSURE (California Civil Code §§2956-2967); CALIFORNIA ASSOCIATION OF REALTORS (C.A.R form SFA),'
once it's completed, the‘SELLER FINANCING ADDENDUM AND DISCLOSURE (SFA)’ should be attached to the ‘purchase agreement’(C.A.R. form RPA-CA) made between the parties (buyers and sellers.)
에스크로 In escrow,
the buyer, signs both a promissory note (promising to repay the loan) and either a mortgage or a deed of trust (allowing the seller to foreclose if the buyer fail to pay). In return, the seller signs a deed transferring title to the buyer.
("most real estate law is state law" 주마다 부동산법이 많이 다를 수 가 있으므로,)
Please consult with your 캘리포니아 California licensed real estate agent/broker and ' 캘리포니아' real estate Lawyers for more information!
