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Appreciation is the increase in your homes value. It often happens that home owners have finished up with far less resale that what they might have expected.

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Instalment Sale Agreements

Instalment Sale Agreements Offer Alternative Method of Purchase

Over the years the property market has seen many changes. An ever-changing economic environment and access to better facilities have led people to develop different ways of buying and selling property, and the option you choose will more than likely be prescribed by what suits your financial situation. The past few years have been especially tough on both first time home buyers as well as current home owners. For first time home buyers it can be virtually impossible to secure a homer loan, while many home owners faced foreclosure due to the recent recession, and no market to sell their properties to. It is at times like these that one should consider alternative methods when buying or selling property, such as instalment sale agreements.

So how do instalment sale agreements differ from the conventional way of buying a house? For buyers, it means that they do not have to qualify for a full home loan, while a seller can find a potential buyer much easier, because of the same reason. The buyer enters into an agreement with the seller whereby they do not purchase the property by means of a registered bond. Instead, they rather pay, for example, a 10% deposit and then a set instalment per month for the agreed period. During this time, the property is still owned by the seller, but the buyer has the option to buy it from the seller. If the buyer had to forfeit on his payments, he or she loses the money they have paid thus far, similar to the way a bond works.

This is only a very broad picture painted of instalment sale agreements. While it is not necessarily the way everybody wants to buy or sell property, it does offer a number of benefits to both the buyer and the seller depending on their situation. To find out more about how instalment sale agreements work, what benefits they have and if it is the right choice for your current situation, contact Bert Smith Incorporated immediately. We are specialist providers of conveyance services and will be able to assist you with all you property related legal questions.