When a person is planning to buy a property or a house or anything that particular person is known as the purchaser and the person who is the owner of the property or the house and if he is selling his property then he is known as the vendor. 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.
In this the purchaser takes the money as a lone from the vendors and the vendors gives them the money on some predetermined terms and conditions which are set by the vendors. If the purchaser agrees to accept the terms and the condition which are set by the vendors then the money is given to him. . 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. Till the time the whole amount is not paid to the vendor the property remains on the vendors name but the purchaser can use the property.
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