Buying a Property by Vendor Finance

Vendor is a person who is selling their property and the person who is purchasing the property is the purchaser. When we are buying a property that involves lot of cash and a good amount of investment as the real estate market is growing and the rates are property are high and in this it may happen you would not have that amount in liquid cash and thus that is when the vendor finance comes in to existence. In this vendor finance scheme the vendor that is the seller pays the amount on the behalf of the purchaser.
In this people agree on the terms and the conditions that are set by the vendor then only the deal is taken further. Till the time the whole amount is paid by the purchaser to the vendor the property remains on the name of the vendor and when the whole amount is paid the property is transferred to the purchaser. Purchaser is allowed to use the property till that time. This is a very convenient option for both the parties and it is better than taking a bank loan.  People can pay at their convenience and they do not have to face any problems as well.

If you use vendor finance the title to the property stays in the vendor’s name until you have made all your repayments and fulfilled your obligations under the sale contract. The day the entire amount is repaid the property is transferred from the vendors name to the purchaser’s name. The time period in which the whole loan amount is not paid to vendor the property remains on the vendors name but in the mean time the purchaser can use the property as well. Everything is based on the contract that is signed by the buyers and all the conditions are decided by the vendor and the buyer has to agree on them then only the contract is signed.