Vendor finance contract is a legal document which is required whenever two parties are dealing with the finance of a good or commodity. Usually purchaser falls short of the cash and the vendor’s provide finance under certain terms and conditions. Vendor finance is usually used in large scale developments.
Sample Vendor Finance Contract
Contract number: – 342/VFC
This contract is signed between
4th turn, Avenue Street
Dallas, United State of America
The former is the finance vendor and latter is the property purchaser. They both enter into a contract under the following terms:-
- Finance vendor will provide 80% of the finances to the purchaser
- Finances will be provided in the form of a monthly installment of $50,000 each.
- Location of the land purchased will be the choice of the purchaser
- All the architectural maps of the house will be passed and approved by the purchaser shall be shown to the finance vendor also.
- Loan shall be repaid within a period of 5 years with a 1% rate of interest
- Any failure in repayment of loan will lead to forfeiture of the property by the vendor.
Termination of Contract
- Any delay in payments from the Finance Vendor to the Purchaser will lead to immediate termination of the contract.
- Any parties wishing to terminate the contract shall provide a written notice a month prior.
Here in with the acceptance of terms and conditions contract is said to come into existence.
Signature of the Finance Vendor
Signature of the Purchaser