Terms of seller-financed note are similar to a promissory note. It is defined as “a written promise to pay a certain sum of money to a certain person or bearer on demand or on a specified date or dates.”

The note must be consignable, dated and fully amortized. The buyers name, price, down payment, interest, length of note, amount of the monthly payment, and balloon payments (if any) must be included.

The seller (the person holding the note) becomes the bank; all monthly payments will be sent to him. Notes could be made on real estate or business purchases.

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