Owner Financing Contract

Owner Finance Contracts

This owner finance contract packet includes the following documents:

• Residential Purchase Agreement (buyer-friendly)
• Residential Sales Agreement (seller-friendly)
• Seller's Disclosure of Financing Terms
• Seller's Disclosure Statement
• Bill of Sale
• Lead-Paint Disclosure Form
• EPA Lead-Paint Brochure

This packet is used by:
The Buy/Sell Traditional Financing Package includes the documents needed either to buy or
sell using traditional financing. The buy/sell agreement is different depending on which side of
the transaction you are on, so choose the one that fits you. The rest of the owner finance contract documents are
used in the transaction, whichever side of the table you are sitting on.

The Documents:

Residential Purchase Agreement (Buyer) / Residential Sales Agreement (Seller)
The Residential Purchase Agreement is a buyer-friendly purchase agreement and establishes
the rights of both the Buyer and the Seller. The Residential Sales agreement is seller-friendly
and establishes the rights of the Buyer and Seller. The contract should be completed with
care and every space requiring information should be filed in completely or with the insertion
of the symbol "n/a" meaning "not applicable." Once the required information in the document is
inserted and the agreement is signed by both parties, it cannot be changed by either the Buyer
or the Seller without the written consent of both parties. Both parties should have a copy of
the completed and agreement.

Seller's Disclosure Statement
The Seller's Disclosure Statement is the document used to disclose defects and problems with
the property. If you are the Seller, fill it out completely and give it to the Buyer. If you are the
Buyer, give this to your Seller and ask for it to be completed and returned. As a Buyer you do
not want to be surprised after close when you find a very expensive repair on your hands that
you did not know about. As a Seller, you do not want the Buyer to come back after close and
challenge the transaction and request a reduction in purchase price for lack of disclosure.

Bill of Sale
The Bill of Sale is the document that transfers interest in personal property (as opposed to real
property) from the Seller to the Buyer. The personal property that is identified in Exhibit A to
the Purchase Agreement or Sales Agreement should be the property identified on the Bill of
Sale. Only the grantor, meaning the seller of the property, need sign the document, but it
should be notarized.

Lead-Paint Disclosure Form
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and
dust can pose health hazards if not managed properly. Lead exposure is especially harmful to
young children and pregnant women. Before sellng pre-1978 housing, sellers must disclose
the presence of known lead-based paint and/or lead-based paint hazards in the dwellng. An
approved form has been provided in this package. The information should be carefully filled
out and the Buyer given a copy. Keep a copy for your records.

EPA Lead-Paint Brochure
In addition to the Lead-Paint Disclosure Form, owners of dwellngs built before 1978 must also
supply a federally-approved pamphlet on lead poisoning prevention. This Brochure is included
in this packet.