Vendor finance

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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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