I am looking to purchase a property, and the owner has agreed to owner finance. I would like to put 20% down with a 5-year balloon payment to pay off the property. I need a template for this.

Lexi, Chatbot

Thank you for sharing your situation. Have you discussed the terms of the owner financing agreement with the current owner?

Lexi, Chatbot

Are there any specific details or clauses you would like to include in the template for the owner financing agreement?

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your owner financing agreement.

EsquireChamp

Greetings, my name is Esquirechamp.

EsquireChamp

Here are the relevant legal principles and examples that can help you draft a contract for purchasing a property with owner financing, a 20% down payment, a 5-year balloon payment, a 45-day due diligence period, and specific conditions for property modifications:

1. Due Diligence Period:

• The contract should include a due diligence period where the buyer can inspect the property and decide whether to proceed.
• For example, in Diaz v. Kosch, the contract provided a 10-day inspection period allowing the buyer to terminate the contract if the property was not acceptable (Diaz v. Kosch, 250 So.3d 156 (2018)).
• Similarly, in Main Street Management Services, Inc. v. Eight Sixty South Ocean Blvd. Inc., the contract included a due diligence period that allowed the buyer to terminate the agreement if certain conditions were not met (993 So.2d 1155 (2008)).

2. Owner Financing and Balloon Payment:

The contract should clearly outline the terms of the owner financing, including:

• Down payment (20%)
• Interest rate
• Balloon payment due at the end of 5 years

While there is no direct case on balloon payments, the financing terms in D’Amico v. Brightfelt highlight the importance of defining loan approval and financing conditions (D’Amico v. Brightfelt, 924 So.2d 872 (2006)).

3. Property Modifications:

The contract should specify the conditions for modifications:

• Exterior modifications must comply with historical review board standards.
• Interior modifications are at the buyer’s discretion.
• In Palm Beach Polo Holdings, Inc. v. Ethrensa Family Trust Company, the contract required the buyer to obtain approval for modifications from both the seller and an architectural committee (Palm Beach Polo Holdings, Inc. v. Ethrensa Family Trust Company as Trustee of Saskia Land Trust, 375 So.3d 914 (2023)).

4. Contingencies and Termination Rights:

•The contract should include provisions allowing the buyer to terminate the agreement if specific conditions are not met:

• In Florida Investment Group 100, LLC v. Lafont, the contract contained a financing contingency, allowing the buyer to back out if financing was not secured (Florida Investment Group 100, LLC v. Lafont, 271 So.3d 1 (2019)).
• In Anthony James Development, Inc. v. Balboa Street Beach Club, Inc., the contract required approvals for development before the closing could take place (Anthony James Development, Inc. v. Balboa Street Beach Club, Inc., 875 So.2d 696 (2004)).

By incorporating these elements into your contract, you can ensure that it addresses the key aspects of your property purchase with owner financing and the conditions for modifications.