Seller Financing

Our Atlanta real estate attorneys help buyers and sellers across Georgia with seller-financed transactions. We draft and review agreements to ensure compliance with state and federal law while protecting your financial interests.

Our Atlanta real estate attorneys help buyers and sellers across Georgia with seller-financed transactions that are legally sound and tailored to your goals. Whether you are a homeowner offering financing or a buyer considering this path to ownership, we guide you through every step to protect your interests.

What is Seller Financing?

Most home purchases involve a traditional mortgage from a bank or financial institution. Seller financing (also called owner financing or seller carryback) is different. In this arrangement, the seller acts as the lender. Instead of making payments to a bank, the buyer makes monthly payments directly to the seller.

At closing, the buyer takes title to the property, but the seller keeps a lien until the debt is fully repaid. Because the terms are negotiated between the parties, seller financing offers flexibility that banks often do not.

Benefits of Seller Financing for Buyers

For many buyers, strict mortgage requirements can be a barrier. A low credit score, high debt-to-income ratio, or limited down payment may prevent loan approval. Seller financing can open the door to homeownership by offering:

• Flexible eligibility requirements

• Negotiable terms for repayment, interest rates, and closing costs

• A faster and more straightforward closing process

Benefits of Seller Financing for Sellers

Offering financing can also be an advantage for sellers. It allows you to:

• Expand the pool of potential buyers

• Spread out capital gains taxes over time

• Sell the property “as is” without costly repairs required by lenders

• Collect interest income on the loan

Risks and Pitfalls of Seller Financing

Both buyers and sellers should be aware of potential downsides.

For buyers:

• A higher interest rate than traditional mortgages

• Fewer built-in protections, such as a mandatory clear title search

For sellers:

• Delayed payment of the full purchase price

• Risk of buyer default, which may lead to foreclosure and added costs

Due to these risks, having an experienced Atlanta real estate attorney draft and review the agreement is crucial.

Seller Financing and Georgia Law

Georgia follows the federal SAFE Act, which limits who can make mortgage loans. However, there is an important exemption: individuals selling their own property can offer financing without being licensed, as long as the property is owned personally (not by an LLC or corporation).

This means that many Georgia homeowners can legally use seller financing; however, the agreement must still comply with state law to be enforceable.

Why Work With a Georgia Seller Financing Attorney

At Thrift McLemore, we make sure your seller-financed transaction is structured properly and protects your rights. Our attorneys:

• Draft and review seller-financing contracts

• Ensure compliance with Georgia and federal law

• Explain risks and obligations clearly

• Negotiate terms that protect your interests

• Help prevent disputes or costly litigation