This question just in from a land owner in Uvita.
I have a question about owner financing of real estate property for sale, and do not really know anyone else, besides you, to trust with a realistic, objective and intelligent answer.
We just received an email from the real estate agent who brought the buyer today, asking us what our financing terms would be. As of this moment, I do not know any details about the offer price, what the buyer’s financial position is, how much they have in cash as a down-payment, but before putting our cards on the table, I wanted to ask you about usual and customary seller financing terms in Costa Rica.
What would be typical and reasonable financing terms?
- Is asking a 50% down payment, with a 7-8% interest rate, maybe a balloon payment or 2, in a year or 2, reasonable?
- How can we make the deal air-tight as far as security of the down payment, and if buyer does not meet balloon payments, we get the property back, with no hassle.
- Is there some sort of legal process, escrow or trust vehicle here in Costa Rica to protect us, the seller, from default?
Quick answer (based on info provided):