Document background
The Owner Finance Purchase Agreement is utilized when traditional mortgage financing is not the preferred or available option for property purchase. This document, governed by English and Welsh law, provides a comprehensive framework for seller-financed property transactions. It includes essential elements such as property details, purchase price, payment terms, security provisions, and default remedies. The agreement must comply with various UK regulations, including the Consumer Credit Act 1974 and Financial Services and Markets Act 2000, particularly regarding consumer protection and credit arrangements. It's commonly used in situations where buyers may not qualify for traditional mortgages or when sellers prefer to earn interest income through direct financing.
