Document background
The Owner Financed Sales Contract is utilized in Singapore when traditional mortgage financing is not preferred or available. This arrangement allows property sellers to act as lenders, creating a direct financial relationship with buyers. The document combines elements of both a property sale agreement and a financing agreement, detailing purchase price, payment terms, interest rates, security measures, and default provisions. It must comply with Singapore's strict property laws, including the Residential Property Act, Conveyancing and Law of Property Act, and Moneylenders Act. This type of contract is particularly relevant in situations where buyers may not qualify for traditional bank financing or when sellers wish to generate ongoing income through interest payments.
