Owner Financed Sales Contract Template for Nigeria

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Key Requirements PROMPT example:

Owner Financed Sales Contract

"I need an Owner Financed Sales Contract for a commercial property in Lagos State, Nigeria, with a 30% down payment and the remaining balance to be paid over 5 years starting March 2025, including provisions for early payment without penalties."

Document background
The Owner Financed Sales Contract is a crucial document in Nigerian real estate transactions where traditional bank financing is either unavailable or undesirable. This document type is particularly relevant in situations where sellers are willing to accept periodic payments instead of a lump sum, or where buyers face challenges accessing conventional mortgage financing. The contract must comply with Nigerian property law, particularly the Land Use Act 1978, and includes comprehensive provisions for both the sale and financing aspects of the transaction. It typically details the property description, purchase price, payment terms, interest rates, security arrangements, and conditions for final title transfer. The Owner Financed Sales Contract is especially useful in developing areas, for agricultural land transactions, or in situations where expedited property transfer is desired while maintaining seller security through retained title until full payment.
Suggested Sections

1. Parties: Identification of the Seller/Financier and Buyer/Borrower with full legal names and addresses

2. Background: Context of the transaction, including property ownership status and intention for owner-financing

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Interest Rate, and Payment Terms

4. Sale Agreement: Core terms of the property sale including property description and purchase price

5. Payment Terms: Detailed structure of payments including down payment, installment amounts, payment schedule, and interest rate

6. Security Provisions: Legal mechanisms securing the seller's interest until full payment, including title retention

7. Property Possession and Usage: Terms governing the buyer's possession and use of the property during the financing period

8. Insurance and Maintenance: Requirements for property insurance and maintenance obligations

9. Default and Remedies: Consequences of payment default and available legal remedies

10. Transfer of Title: Process and conditions for final transfer of property title upon completion of payments

11. Representations and Warranties: Standard declarations by both parties regarding their capacity and the property's status

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

13. Notices: Process for formal communications between parties

14. Execution: Signature blocks and attestation requirements

Optional Sections

1. Property Management: Additional terms for property management during the financing period, used when the property is a commercial or rental property

2. Early Payment Provisions: Terms for early payment or complete buyout, included when early payment is allowed

3. Co-signer Provisions: Terms relating to co-signers or guarantors, used when additional security is required

4. Property Development: Terms governing any allowed or restricted development of the property, used for undeveloped land

5. Assignment and Transfer: Terms allowing or restricting the transfer of contract rights, used for longer financing periods

6. Special Use Conditions: Specific conditions relating to property use, included for properties with unique characteristics or restrictions

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the property including boundaries, title details, and registration information

2. Schedule B - Payment Schedule: Detailed amortization schedule showing all payments, interest calculations, and balance reductions

3. Schedule C - Property Condition Report: Documentation of property condition at time of contract

4. Schedule D - Required Insurance: Specific insurance requirements and minimum coverage amounts

5. Schedule E - Permitted Uses: Detailed list of permitted and prohibited uses of the property

6. Appendix 1 - Title Documents: Copies of relevant title documents and certificates

7. Appendix 2 - Property Plans: Survey plans, building plans, and other relevant property drawings

8. Appendix 3 - Required Consents: Copies of necessary governmental or regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Banking and Finance

Legal Services

Agriculture (for farmland)

Commercial Property

Residential Property

Industrial Property

Relevant Teams

Legal

Real Estate

Property Management

Finance

Compliance

Risk Management

Documentation

Business Development

Investment

Operations

Relevant Roles

Real Estate Attorney

Property Lawyer

Real Estate Agent

Property Manager

Legal Counsel

Contract Manager

Property Developer

Financial Controller

Real Estate Investment Manager

Land Administrator

Compliance Officer

Title Officer

Property Rights Specialist

Real Estate Transaction Coordinator

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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