Get Immediate Access to Our Owner Financing Addendum Template For Sellers

This Owner Financing Addendum is designed to be attached to a Real Estate Purchase and Sale Agreement. The purpose of the owner finance addendum is to outline the specific seller financing agreement terms for a property sale. It's important to note that this owner financing addendum is intended for traditional owner financing deals, where the seller owns the property outright or any underlying owner mortgages and loans will be paid off in full by closing. Note that it is not intended for property sales where the current owner's existing mortgage loan will remain in place after the acquisition (commonly referred to as a 'Subject To' contract or 'SubTo' agreement sale). It is important to review all sections of this owner finance addendum, customize it to your specific financing arrangement, and seek validation from legal and financial professionals before formalizing the owner financing addendum.

Other Purchase Documents You May Need With A Owner Financing Addendum

While an owner financing addendum is essential for this type of real estate sale transaction, additional purchase or sale documents and clauses may be necessary. These could be specifically required by the county, city, and state to process your transaction, such as a Real Estate Purchase and Sale Agreement, Seller Property Condition & Disclosure Statement, Lead-Based Paint Disclosure, and other potential documents. It is important to do your due diligence and seek validation from a local legal professional before finalizing the seller financing agreement to ensure that all required documents and clauses are included in your owner financing agreement.

This owner financing addendum is designed to be attached to a real estate purchase and sale agreement. If you need a purchase and sale agreement, you can use our Owner Financing Contract Template that comes with this owner finance addendum attached or you can purchase our Purchase & Sale Agreement Purchase & Sale Agreement separately.

Is This The Owner Financing Promissory Note?

This owner financing addendum is separate from the owner financing promissory note. However, the owner financing addendum should identify the promissory note terms that will be included in the owner financing note. The owner financing promissory note is usually created during the closing process, while the owner financing addendum is drafted along with the purchase and sale agreement. You can find a copy of our Promissory Note Template on our website, or you may request a legal professional, or sometimes your title and escrow company, to draft a owner financing promissory note for you before closing. 

Note that this owner financing addendum template was created for owners looking to sell their properties with seller financing. If you’re evaluating the purchase of a property with seller financing, then you should use our Seller Financing Addendum Template For Buyers.