Document background
The Seller Financing Agreement is utilized when traditional bank financing is either unavailable or undesirable, and the seller is willing to accept periodic payments rather than a full upfront payment. Common in real estate and business asset sales in Denmark, this document type must comply with Danish financial regulations and property laws. The agreement includes comprehensive details about the financing terms, security arrangements, and both parties' obligations. A well-structured Seller Financing Agreement is crucial for protecting both parties' interests and ensuring compliance with Danish legal requirements, particularly the Credit Agreements Act (Kreditaftaleloven) and the Registration of Property Act (Tinglysningsloven). The document is especially relevant in situations where sellers wish to generate ongoing income through interest payments or where buyers face challenges accessing traditional financing options.
