An instalment contract is also known as seller finance or delayed completion. It is a legal agreement that enables buyer to purchase a property without the need to obtain a mortgage.
The total price is agreed in advance and fixed, the owner is obliged to sell, and buyer is bounded to buy the property under clauses of such agreement. The future value of the property can go up or down, but it does not affect terms of contract.
The buyer often pays a small deposit in order to exchange contracts with the seller. Further schedule of payments is agreed to be paid in equal amounts every month for the agreed period, often spreading up to 10 to 15 years.
In most cases it is possible to complete the purchase by paying the full outstanding balance at any time without restriction or additional cost. Upon completion the title of the property is transferred to the buyer’s name.
Holiday Property source on behalf of clients holiday homes from distressed owners in countries that allow instalment contract or seller finance.
Our brokerage firm puts together frustrated vendors and eager buyers and arranges legal transfer of the property from one individual to another within the agreed period of time. The longer the period – the wider the circle of potential eager buyers on the market.