Seller Financing Agreement Template for Singapore

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Key Requirements PROMPT example:

Seller Financing Agreement

"Need a Seller Financing Agreement for the sale of my manufacturing equipment worth SGD 500,000 to a small business, with monthly payments over 3 years and a 15% down payment, to be executed by March 2025."

Document background
A Seller Financing Agreement becomes necessary when traditional financing options are unavailable or undesirable, and the seller is willing to accept periodic payments rather than a lump sum. Under Singapore law, this agreement must comply with strict financial regulations, including the Moneylenders Act and MAS guidelines. The document typically includes detailed payment schedules, interest calculations, security arrangements, and default remedies. This type of financing is particularly common in real estate and business asset sales where the seller has sufficient capital to offer financing terms.
Suggested Sections

1. Parties: Identification of seller and buyer, including full legal names and addresses

2. Background: Context of the transaction and brief description of the financing arrangement

3. Definitions: Key terms used throughout the agreement

4. Purchase Price and Financing Terms: Total purchase price, down payment, loan amount, interest rate, and payment schedule

5. Security and Collateral: Details of assets securing the loan

6. Payment Terms: Payment mechanics, dates, and methods

7. Default Provisions: Consequences of default and remedies available

8. Representations and Warranties: Standard declarations by both parties

9. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Insurance Requirements: Optional section specifying insurance requirements when valuable assets are involved as security

2. Prepayment Provisions: Optional section detailing terms for early repayment when such options are allowed

3. Third Party Guarantees: Optional section covering details of any guarantors when additional security is required

4. Assignment Rights: Optional section specifying rights to assign the agreement when assignment might be contemplated

Suggested Schedules

1. Payment Schedule: Detailed amortization table showing payment dates and amounts

2. Property Description: Detailed description of property or assets being financed

3. Security Documents: Forms of security documents, mortgages, or charges

4. Condition Reports: For asset financing, condition of assets at time of agreement

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
Industries

Moneylenders Act: Chapter 188 of Singapore laws - Regulates moneylending activities, interest rate restrictions, and licensing requirements for financing arrangements

Contracts Act: Chapter 53 of Singapore laws - Governs the formation and enforcement of contracts, including financing agreements

Property Law Act: Chapter 242 of Singapore laws - Relevant for security interests and property-related aspects of the financing agreement

Monetary Authority of Singapore Act: Chapter 186 of Singapore laws - Establishes regulatory framework for financial services and transactions

Securities and Futures Act: Chapter 289 of Singapore laws - Relevant if the financing arrangement involves any securities or regulated financial products

Banking Act: Chapter 19 of Singapore laws - May be relevant if the financing arrangement intersects with banking regulations

Consumer Protection Act: Chapter 52A of Singapore laws - Ensures fair trading practices and consumer protection in financial transactions

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore governing financial transactions and arrangements

Registry Requirements: Requirements from the Registry of Moneylenders for registration and compliance of financing arrangements

Tax Regulations: IRAS guidelines and requirements for tax implications of seller financing arrangements

Interest Rate Compliance: Specific requirements and restrictions on interest rates under Singapore moneylending laws

Security Documentation: Requirements for properly documenting and registering security interests and collateral arrangements

Disclosure Requirements: Mandatory disclosure obligations to ensure transparency in financing arrangements

Stamp Duty: Stamp duty implications and requirements for financing agreements under Singapore law

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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