Buying a property or a house is not a small thing it involves huge investment and sometimes it is not possible to put in the whole amount at just once and thus that is when the Vendor finance comes in. Many a times it happens that the person does not have enough money to buy the property right away and they look for some source to get finance from at that time vendor finance comes in. This is mostly used for some large scale apartment’s developments.
Vendor finance is a new strategy which is used now a days where the purchaser who is going to buy the property takes a money as a lone from the vendors and the vendor gives them the money on some terms and conditions which are pre determined by the vendors and the purchasers should accept the terms and conditions and then only the deals moves forward. If you use Vendor finance the title to the property stays in the vendor's name until you have made all your repayments and fulfilled your obligations under the sale contract. The time period in which the whole loan amount is not paid to vendor the property remains on the vendors name but in the mean time the purchaser can use the property as well.
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