In this vendor finance There are some pre determined terms and conditions which are set by the vendor and the purchaser have to sign a contract with the vendor agreeing on all the terms and conditions.
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Vendor finance
1. Vendor finance
In the real estate business there is a buyer and there is a seller like any other
market does but when in this market the buyer is known as the purchaser and
the seller is known as the vendor. When we are planning to buy a property it
includes a huge amount of investment and sometimes it may happen that you
do not have the whole amount right away to buy the property at that time
some financing is needed and that is when the vendor finance is used.
In this vendor finance the financial aid is given to the purchaser from the
vendor. There are some pre determined terms and conditions which are set
by the vendor and the purchaser have to sign a contract with the vendor
agreeing on all the terms and conditions. In this the vendor pays the money
on the behalf of the buyer and the property stays on the vendors name till the
time the buyer pays the entire amount back to vendor. Vendor finance is very
similar to a lay-by transaction as you make repayments, except you can live in
the property as you continue to make repayments unlike a lay-by where you
need to live the item at the store.
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