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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Owner Financing


Synonyms:carryback loan, owner financed, private lending, seller carry back, seller financing
Acronyms &
abbreviations:
O/F, OF, OWN
Filed Under: real-estate
Tags: classifieds, finance, property listing, realty
 

Definition of owner financing (O/F, OF, OWN)

owner financing (O/F, OF, OWN)
1. A real estate transaction where the person selling the property lends the buyer all or a portion of the money for the purchase.

Related Terms and Acronyms:

  • for sale by owner (FSBO)   An arrangement by which a house's owner tries to sell the house without hiring a real-estate agent. Owners do this to avoid paying a commission.
      ➥  Can save the seller money by forgoing realtor fees.
  • loan servicing   Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
  • sale-leaseback   A transaction in which the seller transfers the title to the buyer, then rents the property from the new owner. Generally not done in Canada, more an American practice.
  • seller carryback   A form of financing in which the seller of a property accepts a down payment and agrees to accept payments until the property is paid for.
  • vendor take back   Where the seller of the property provides all or some of the financing in order to sell the property.

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