Alienation of Property
Alienation of Property Can Be Done In More than One Way
There is more than one way to sell property. Because of the different financial abilities of buyers, various credit services offered and even diverse uses for land, the alienation of property can be done in a number of ways to meet these variables in the most effective way possible. The method that most of us are familiar with is for a buyer to apply for a bond or home loan and then sign an agreement with the seller. The seller receives the full sum and the financial institute that extended the credit to the buyer holds the deeds of the property in question as guarantee on the loan. But what are first time home buyers supposed to do?
It is often exceptionally difficult for these first time home buyers to qualify for a decent home loan. The good news is that there is still hope for these individuals. An alternative and legal method to go about the alienation of property is for the seller to choose to opt for an instalment sale agreement. This can potentially hold a number of benefits to both parties involved. Buyers do not have to struggle to get a home loan approved, while sellers don’t have to wait for years on end to find a suitable buyer, especially in the current downturn in the market.
What an instalment sale agreement implies is that the buyer does not pay the full amount as one large sum to the seller. Usually the sale involves a deposit and then a monthly instalment from the buyer to the seller for the agreed period. If the buyer forfeits on a payment, however, the seller can terminate the contract and the buyer will not be entitles to the money already paid – similar to the way a bond works.
This is only a very basic introduction to instalment sale agreements. To find out more about the benefits for the parties involved, as well as how to go about drawing up and setting this form of alienation of property in action, contact Bert Smith Incorporated. We are specialists in the provision of conveyance services and will gladly assist you in navigating this and related processes.