Seller Financing in B.C.

[EdRenkema]

I have a potential buyer for a condo I own in Kimberley BC. It has been vacant for 6 months, formerly principal residence that I kept as a rental. The buyer is a tenant applicant that showed up just prior to me listing the property with a local realtor. He is going through a divorce and will need time to sort out the sale of his home before he can purchase on his own.
He answered all the questions without hesitation and gave some good numbers.

He is 51 yrs old and has full time employment.
Has downpayment of $30K
Maximum monthly payment $1000
Claims his credit is `fair` (I asked if it was good, fair, or ugly)

The property was appraised 18 months ago at $230K and I was going to list it at that price.
The gentleman is getting back to me today with his final decision.
I need to know how to set up a contract or Agreement for Sale in BC, will be contacting a local RE lawyer today.
Any suggestions on how to set this up?

 

[tonypeters]

Ed, my recommendation would be to keep it simple and structure a "Residential Lease with Option to Purchase" contract. I would start by requesting a small (non-refundable but apply to initial down payment if approved) application fee. After you receive this commitment you would then need to perform your due-diligence (pull credit, verify employment, income and down payment) on the applicant before moving forward.

QUOTE (EdRenkema @ Dec 22 2009, 09:37 AM) I have a potential buyer for a condo I own in Kimberley BC. It has been vacant for 6 months, formerly principal residence that I kept as a rental. The buyer is a tenant applicant that showed up just prior to me listing the property with a local realtor. He is going through a divorce and will need time to sort out the sale of his home before he can purchase on his own.
He answered all the questions without hesitation and gave some good numbers.

He is 51 yrs old and has full time employment.
Has downpayment of $30K
Maximum monthly payment $1000
Claims his credit is `fair` (I asked if it was good, fair, or ugly)

The property was appraised 18 months ago at $230K and I was going to list it at that price.
The gentleman is getting back to me today with his final decision.
I need to know how to set up a contract or Agreement for Sale in BC, will be contacting a local RE lawyer today.
Any suggestions on how to set this up?

 

[EdRenkema]

QUOTE (tonypeters @ Dec 22 2009, 11:09 AM) Ed, my recommendation would be to keep it simple and structure a "Residential Lease with Option to Purchase" contract. I would start by requesting a small (non-refundable but apply to initial down payment if approved) application fee. After you receive this commitment you would then need to perform your due-diligence (pull credit, verify employment, income and down payment) on the applicant before moving forward.

Thanks Tony