Legal Documents for Seller Financing Plan

1. Seller Financing Application

  • Purpose: The Seller Financing Application is the first step in the process. It helps assess whether the buyer can meet the financial requirements of the seller financing plan. This application typically asks for basic financial information to determine the buyer’s ability to make the down payment and handle monthly payments.
  • Why It’s Important: It ensures that both parties are on the same page financially before moving forward with the purchase, helping to prevent issues down the road.

2. Buyer Due Diligence Disclosure Statement

  • Purpose: This document provides the buyer with a clear understanding of their responsibilities during the due diligence period. It outlines the 15-day window in which the buyer must inspect the property, perform a title search, and ensure there are no issues with the property.
  • Why It’s Important: It protects the buyer by giving them time to conduct all necessary checks on the property and ensures transparency in the purchase process. If the buyer decides not to move forward during this period, they can receive a refund of their down payment.

3. Land Sale Contract

  • Purpose: The Land Sale Contract is the legally binding agreement between the seller (Angel REI Properties LLC) and the buyer. It outlines the terms and conditions of the sale, including the purchase price, down payment, monthly payment amounts, and any restrictions or obligations.
  • Why It’s Important: This contract sets the legal foundation for the transaction, ensuring that both parties are protected and understand their rights and obligations throughout the financing period.

4. Promissory Note

  • Purpose: The Promissory Note is a financial agreement in which the buyer formally promises to pay the seller a specified amount over a set period. It outlines the total amount financed, payment schedule, and consequences for missed payments.
  • Why It’s Important: It legally binds the buyer to make regular payments and details the financing terms. This document is crucial for formalizing the financial aspect of the seller financing plan.

5. ACH Authorization Form

  • Purpose: The ACH Authorization Form gives the seller permission to automatically withdraw monthly payments from the buyer’s bank account through the Automated Clearing House (ACH) system.
  • Why It’s Important: This form simplifies the payment process by ensuring timely and automatic payments, reducing the need for manual payment tracking and minimizing the risk of missed payments.

How to Buy Land Through Seller Financing 📈

  1. Pick Your Parcel:
    Browse our available land listings on Facebook Marketplace or our website, and select the parcel that best fits your needs.
  2. Apply for Seller Financing:
    We’ll email you a Seller Financing application through e-signature for you to complete. This application is used to assess your eligibility and doesn’t guarantee approval. Rest assured, your information will remain confidential.
  3. Submit Your Down Payment:
    After your application is approved, we’ll send you a Buyer Due Diligence Disclosure Statement and a PayPal link for the down payment. You’ll have 15 days to inspect the property and perform a title search. If you’re not satisfied, we’ll refund your down payment. If you’re happy with the property, we’ll send you the Land Sale Contract, Promissory Note, and ACH Authorization Form for review.
  4. Sign the Contract:
    Once you’ve reviewed the documents, sign the contract to confirm your purchase. After we receive the signed contract, you’re ready to start enjoying the property!
  5. First Payment Due:
    Your first monthly payment will be due 30 days after signing the contract. Payments are easy and automatic through our ACH system, ensuring convenience and timely payments.
  6. Use Your Property:
    After signing the contract, you’re free to use the property right away! Just make sure to follow all county and association rules during the financing period.
  7. Receive Your Deed:
    Once you’ve made all the payments, we’ll prepare, notarize, and record a Special Warranty Deed in your name. The recorded deed will then be sent to your address, officially making the property yours.
  8. Pay in Full (Optional):
    If you prefer to pay the full price upfront, we’ll immediately transfer the deed to you once payment is received.

Still have questions? Check out our Frequently Asked Questions section or contact us for more details!

Why Finance with Angel REI Properties LLC Instead of a Bank? 🏛️

Financing directly through Angel REI Properties LLC offers several advantages over traditional bank mortgages:

  • We Own the Properties Outright 🔐
    At Angel REI Properties LLC, we purchase all our land with cash. This means we fully own each property, giving us the flexibility to offer better financing terms without the pressure to sell quickly.
  • No Interest Charged ✔️
    We don’t charge interest on our financing plans. Because we already own the land, we can offer interest-free payments. Plus, if you pay upfront, we offer a discount as a reward for your immediate investment.
  • No Credit Check Required 💳
    Since we retain legal title and deed until all payments are completed, there’s no need for a credit check. This makes our financing option accessible to buyers who may not qualify for traditional bank loans.
  • Limited Buyer Liability 🔑
    Unlike traditional mortgages, where missed payments can result in foreclosure and hurt your credit, our seller financing is less risky. If payments are missed, we simply retain the property, protecting you from long-term financial consequences.

Still have questions? Check out our Land For Sale / How It Works / FAQ

BUYER APPLICATION FORM

Personal Information

  • Full Name:
  • Date of Birth:
  • Marital Status:
  • Phone Number:
  • Email Address:

Contact Information

  • Home Address:
  • City:
  • State:
  • ZIP Code:

Employment Information

  • Employment Status:
    • ☐ Employed Full-Time
    • ☐ Employed Part-Time
    • ☐ Self-Employed
    • ☐ Unemployed
    • ☐ Retired
  • Current Employer/Company Name:
  • Employer/Company Address:
  • Monthly Income:

Property Information Being Financed

  • Parcel Number:
  • Legal Description:
  • Address:
  • County:
  • State:

Financial Capability

  • Available Funds for Down Payment:
  • Monthly Payment Capability:

Authorization and Signature I certify that the information provided is true and correct. I authorize the seller to verify my employment and financial information.

  • Buyer’s Signature:
  • Date:

Spouse’s Information (if applicable)

  • Spouse’s Full Name:
  • Employment Status:
  • Employer:
  • Monthly Income:

Spouse’s Authorization and Signature I certify that the information provided is true and correct. I authorize the seller to verify my employment and financial information.

  • Spouse’s Signature:
  • Date:

Attachments Required

  1. Copy of Driver’s License or ID.
  2. Proof of Income (e.g., pay stubs, tax returns).
  3. Employment Verification Letter (if applicable).

Note: This application is for preliminary assessment and does not guarantee approval of seller financing. All information will be kept confidential.

BUYER DUE DILIGENCE DISCLOSURE STATEMENT

Today’s Date: ________________

Property Information:
• Parcel ID: _________________________
• County: _________________________
• State: _________________________
Seller: Angel REI Properties LLC, a Washington Limited Liability Company
Buyer: ___________________________________________

Disclosure Statement

As part of the purchase agreement for the property referenced above, the Buyer acknowledges and agrees to the following:

1. Deposit Agreement and Due Diligence Period:
A down payment of $500 is required to place the property in “Pending Status.” This deposit is refundable if you decide not to proceed within the 15-day due diligence period, which begins when you sign this Disclosure Statement. During this period, you are responsible for all inspections and title searches. If you choose to move forward, the deposit will be applied toward the purchase price, and we will provide the necessary contract documents for review.

2. Buyer’s Responsibility for Due Diligence:
The Buyer is solely responsible for conducting all due diligence related to the property. This includes, but is not limited to, verifying the legal description, boundaries, zoning, access to utilities, environmental conditions, and any other factors affecting the use or value of the property. The Seller makes no representations or warranties regarding these matters.

3. Title Search and Inspection:
The Buyer is responsible for performing a thorough title search to identify any liens, encumbrances, easements, or other issues affecting the property. The Buyer must also conduct any inspections they deem necessary, such as environmental, structural, or other relevant inspections.

4. Survey:
The Buyer is responsible for obtaining a land survey at their own expense to verify the property’s boundaries, encroachments, easements, or other matters. If the Buyer chooses to waive the survey, they assume all risks related to the lack of one.

5. Assumption of Risk:
The Buyer acknowledges that the property is being purchased “as-is” and that the Seller is not responsible for any issues discovered after the purchase, including but not limited to title, boundary, zoning, or environmental concerns.

6. No Seller Liability:
The Buyer understands that the Seller has made no guarantees regarding the property’s condition, suitability for a particular use, or compliance with laws. The Seller is not responsible for any costs, losses, or damages incurred by the Buyer due to failure to conduct due diligence or any property defects.

8. Expiration of the Disclosure Statement:
The Buyer has 3 days from the date the Disclosure Statement is provided to them to review and sign it. If the Buyer does not sign the document within this period, the Disclosure Statement will expire, and the Seller may terminate the purchase agreement or issue a new disclosure statement.

9. Acknowledgment and Signature:
By signing below, the Buyer acknowledges that they have read and understood this Disclosure Statement and accept full responsibility for conducting due diligence. The Buyer further acknowledges that they are entering into this agreement voluntarily, without reliance on any representations made by the Seller.

Buyer:
• Signature: _____________________________________________
• Printed Name: __________________________________________
• Date: ___________________

LAND SALE CONTRACT

This Land Sale Contract (“Contract”) is made between Angel REI Properties LLC, a Washington Limited Liability Company (“Seller”), and the undersigned buyer(s) (“Buyer”), for the purchase of the following described property under the terms and conditions outlined below.

1. Property Description:

  • Parcel ID: ____________________________
  • Legal Description: ______________________
  • County: ____________________
  • State: ____________________
  • Together with all fixtures, landscaping, improvements, and appurtenances (hereinafter collectively referred to as the “Property”).

2. Non-Assignability of Contract: This contract is non-assignable. The Buyer may not assign, transfer, or sell their interest in the Property or this Contract to another party without prior written consent from the Seller.

3. Purchase Price and Method of Payment:

  • Purchase Price: $___________________
  • Down Payment: $___________________
  • Amount Financed: $___________________
  • Interest Rate: ________% per annum
  • Monthly Payment: $___________________
  • Payment Term: ________ months
  • Payment Allocation: $_________________ toward principal and interest, $_________________ toward Note Servicing Fee, and $_________________ toward estimated taxes.

The Buyer may pay the full balance of the property at any time without penalty.

4. Deed Retention: The Seller will retain the deed to the Property until the Buyer has paid the full purchase price, including any applicable interest. Once the Buyer has completed all payments, the Seller will execute and deliver the Special Warranty Deed, transferring ownership of the Property to the Buyer.

Restriction on Recording:
The Buyer agrees not to record this Land Sale Contract or any related document with the county or any public record office until the full purchase price has been paid. Any attempt to record this contract before full payment will constitute a default under the terms of this agreement and may result in termination of the contract and forfeiture of payments made to date.

5. Property Use Restrictions:

  • The Buyer is prohibited from cutting down any large trees on the Property that require a permit under county or state laws.
  • The Buyer is not permitted to construct any structures on the Property, including but not limited to homes, sheds, or fences, until the full payment for the Property has been made.
  • Any alterations to the Property must comply with all applicable laws and regulations, including county zoning ordinances. All fines, violations, or penalties resulting from non-compliance with county regulations are the Buyer’s responsibility.

6. Compliance with County Regulations: The Buyer agrees to comply with all county and zoning laws applicable to the Property. The Buyer is responsible for obtaining any necessary permits or approvals before altering the Property and will bear full responsibility for any violations or fines. If any such violations occur, the Buyer must remedy them at their own expense.

7. Taxes and Liens:

  • The Seller warrants that the Property is free of all liens and that taxes are current.
  • The Seller will pay property taxes annually, and the Buyer will reimburse the Seller through monthly installments included in their regular payments.
  • If the Buyer fails to reimburse property taxes within 60 days of the due date, the Buyer will be in default, and the remaining balance of the purchase price will be due within 30 days.

8. Default and Foreclosure:

  • If the Buyer defaults on any monthly payment by more than 30 days, the Seller will send a notice of default to the Buyer via email.
  • The Buyer will have 30 days from the date of the default notice to cure the default by bringing all payments current. If full payment is not received within this period, the property will be considered foreclosed, and the Buyer will forfeit all interest in the Property and all payments made to date.
  • In the event of a legal dispute, the prevailing party will be entitled to recover all associated costs, including attorney’s fees.

9. Marketable Title: The Seller will provide the Buyer with a marketable title upon full payment of the purchase price and the execution of the deed transfer.

10. Payment Grace Period: A grace period of 10 days from the payment due date is provided. If payment is not received within this period, a late fee of $50.00 will be assessed.

11. Recording of Deed: Upon full payment, the Seller will prepare and notarize the Special Warranty Deed and submit it for recording with the County Recorder’s Office of ________________________, State of _______________, within 30 days of the final payment.

12. Binding Agreement: This Contract becomes a binding agreement upon signature and notarization by both parties. The Buyer acknowledges that they have read and understood the terms and conditions of this Contract and agree to be bound by them.

Buyer(s) Acknowledgment and Signature: I/We, ________________________, _________________________ agree to the terms of this Land Sale Contract and acknowledge it as a legally binding agreement.

  • Buyer Signature: ___________________________________________ Date: ___________
  • Buyer Signature: ___________________________________________ Date: ___________

Seller Acknowledgment and Signature: Angelito Callelero, Member of Angel REI Properties LLC, a Washington Limited Liability Company, acknowledges and agrees to the terms of this Land Sale Contract. This document is notarized solely by the Seller.

  • Seller Signature: ___________________________________________ Date: ___________

Notary Acknowledgment:

State of _____________________
County of ____________________

I certify that I know or have satisfactory evidence that Angelito Callelero, Member of Angel REI Properties LLC, is the person who appeared before me, and they acknowledged that they signed this instrument and acknowledged it to be their free and voluntary act.

Dated: _______________________

Notary Public Signature: ___________________________________________
Notary Public Printed Name: _______________________________________
My appointment expires: ___________________

PROMISSORY NOTE

1. Borrower Information:
Borrower(s): ___________________________________________ (“Borrower”)
Lender: Angel REI Properties LLC (“Lender”)
Principal Amount: $_________________
Interest Rate: ________% per annum
Loan Term: _______ months

2. Payment Terms:
Monthly Payment: Borrower agrees to pay Lender $________________ per month, which includes the following:
Principal and interest: $_____________________
Note Servicing Fee: $______________________
Estimated Property Taxes: $_________________
Total Monthly Payment: $_________________
First Payment Date: Payments will begin on ______________________, with subsequent payments due on the same day of each following month.
Interest Calculation: Interest is calculated on the unpaid principal balance at the rate specified above. Payments will be applied in the following order:
Accrued unpaid interest
Late charges (if any)
Principal
Payment Method: Borrower will make payments through the Lender’s designated payment system or any other location the Lender designates in writing.
Final Payment: The final payment will include any remaining unpaid principal, accrued interest, and any other outstanding amounts due under this Note.

3. Prepayment:
Prepayment Rights: Borrower has the right to prepay this Note, either in part or in full, at any time without incurring any prepayment penalties.

4. Late Charge:
Late Payment Penalty: If the Lender does not receive a payment within ten (10) calendar days of its due date, the Borrower will be charged a late fee of $50.00, in addition to the regularly scheduled payment and any other amounts owed under this Note.

5. Default Events:
Each of the following constitutes an event of default under this Note:
Payment Default: Borrower fails to make any payment when due under this Note.
Covenant Default: Borrower fails to comply with any material term, obligation, covenant, or condition contained in any other agreement between Borrower and Lender, including but not limited to, the Land Sale Contract.
Cross-Default: Borrower defaults under any other loan with any other creditor, if such default may materially affect the property securing this Note.
False Statements: Any false or misleading statement made by Borrower to Lender in connection with this loan.

6. Cure Period:
If the Borrower defaults on any monthly payment by more than 30 days, the Lender will send a notice of default to the Borrower via email.
The Borrower will have 30 days from the date of the default notice to cure the default by bringing all payments current. If full payment is not received within this period, the property will be considered foreclosed, and the Borrower will forfeit all interest in the Property and all payments made to date, as outlined in the Land Sale Contract.
For non-monetary defaults that are curable, and if the Borrower has not received a notice of breach of the same provision within the past twelve (12) months, then the default may be cured if:
Borrower cures the default within fifteen (15) days after receiving written notice from Lender; or
If the default cannot be cured within fifteen (15) days, Borrower immediately begins efforts to cure and completes the cure within thirty (30) days.

7. Security:
Collateral: This Promissory Note is secured by the Land Sale Contract dated _______________________. Any default under the Land Sale Contract will be considered a default under this Note.

8. Acceleration Clause:
Acceleration Upon Default: In the event of any default, including failure to make any required payment or failure to perform any covenant in the Land Sale Contract, the entire unpaid principal balance, along with all accrued interest, shall, at the Lender’s option, become immediately due and payable.
Acceleration Upon Sale or Transfer: If Borrower sells, transfers, or otherwise disposes of the property secured by the Land Sale Contract, the entire unpaid principal balance and accrued interest shall, at the Lender’s option, become immediately due and payable.

9. Collection Costs:
Borrower’s Obligation: Borrower agrees to pay all costs, including reasonable attorney’s fees, incurred by Lender in collecting any unpaid amounts due under this Note.

10. Jurisdiction and Venue:
Legal Proceedings: Any claim, action, or proceeding to enforce the parties’ rights under this Note shall be brought in the state and federal courts located in the jurisdiction of the property, or any other jurisdiction chosen by the Lender, in accordance with Florida law.

11. Waivers:
Borrower Waivers: Borrower waives the right to:
Presentment for payment
Demand for payment
Notice of non-payment or dishonor
Protest of any dishonored payment
Notice of protest
Diligence in collection or enforcement of this Note
Any defense based on an extension of the time for payment granted by Lender to Borrower

Borrower’s Acknowledgment and Signature: I, the undersigned Borrower, agree to the terms of this Promissory Note as outlined above.
Borrower’s Signature: __________________________________________________________
Date: __________________________________
Co-Borrower’s Signature: ______________________________________________________
Date: __________________________________

ACH Authorization Form

Recurring Payment Authorization

I, ______________________________________ (Borrower), authorize Angel REI Properties LLC (Lender) to initiate automatic withdrawals from my checking or savings account listed below for my loan payments.

Authorization Details:

  1. Borrower Name: _____________________________________ (Print Name)
  2. Monthly Payment Amount: $_________________________ (plus any applicable late fees)
  3. Payment Date: On the loan due date each month
  4. Notification: I will receive payment notifications via email and on my bank statement.

Bank Account Information:

  • Account Type: ☐ Checking ☐ Savings
  • Name on Account: __________________________________________
  • Bank Name: _______________________________________________
  • Bank City/State: ____________________________________________
  • Account Number: ___________________________________________
  • Bank Routing Number: _______________________________________

Terms and Conditions:

  • I understand that withdrawals will be made automatically each month.
  • I agree to maintain sufficient funds in my account.
  • I will notify the Lender in writing of any changes to my account information or to terminate this authorization at least 15 days before the next payment due date.
  • I acknowledge that ACH transactions must comply with U.S. law.
  • I understand that I may incur fees if there are insufficient funds in my account.

Access to Records:

  • I have access to my payment records at https://app.yourlandloans.com/.
  • I will receive email alerts related to my loan at my registered email address.

Signature: I authorize Angel REI Properties LLC to initiate debit entries to my account for loan payments as specified above. This authorization will remain in effect until I provide written notice of termination.

Authorized Signature: ________________________________

Print Name: ______________________________________ Date: _________________

Contact Information:

  • Address: _________________________________________________________
  • Social Security Number: ____________________________________________
  • Date of Birth: _____________________________________________________
  • Email: ___________________________________________________________
  • Telephone: _______________________________________________________