Terms, explained
What does "terms" mean?
It means we buy your house and pay you over time instead of all at closing. You act as the lender: we make a down payment, then monthly payments with interest, and a recorded note and deed of trust secure the loan, the same way a bank loan is secured.
Why would a seller choose terms?
Owners who do not need all the cash at once often prefer a steady monthly income. Terms can also support a higher price than a cash sale, and spreading payments out may change how the gain is taxed. Ask your tax advisor how an installment sale works for you.
What if I still have a mortgage?
Terms usually fit best when the house is paid off or has a lot of equity. If you have a loan, tell us. We will look at what works and what does not, and say so plainly.
Who handles the paperwork?
A local title company closes the sale and records the documents. You are welcome to have an attorney review the note and deed of trust before you sign.
This page is general information, not legal, tax or financial advice. For your situation, talk with an Arizona attorney and a tax professional.