Owner Financing Attorney in Tennessee

Owner financing work spans seller-side and buyer-side document drafting and review for transactions where the seller is carrying the paper instead of the buyer using a bank loan. The package typically includes a promissory note, a deed of trust securing the note, and supporting documents.

Where appropriate, the engagement also addresses default and remedy provisions, prepayment terms, due-on-sale clauses, late-fee and acceleration mechanics, and the federal lending-disclosure questions (Dodd-Frank, SAFE Act) that can apply to certain seller-financed deals.

Sellers carrying the paper on a real estate sale instead of requiring a bank-financed buyer. Buyers using seller financing because conventional financing is not available or not preferred. Investors with multiple seller-financed transactions who need a clean template.

Tennessee owner-financed transactions secured by a deed of trust follow the standard nonjudicial-foreclosure framework if the buyer defaults. Document precision matters: the note, deed of trust, and any supporting agreements need to be aligned, properly recorded, and clear on the trustee's role at default.

Beyond the deal documents, owner-financed residential sales in Tennessee should flag mortgage-licensing rules under Tenn. Code Ann. § 45-13-201, high-cost home-loan rules under Tenn. Code Ann. § 45-20-101 et seq., and usury and home-loan interest-rate limits under Tenn. Code Ann. §§ 47-14-103, 47-14-117, and 47-15-102. Whether each rule applies depends on the seller's status, loan purpose, and property type.

Federal Dodd-Frank and Reg Z seller-financing rules apply to consumer-purpose credit secured by a dwelling, with limited exclusions for one property by a natural person, estate, or trust, and for three or fewer properties in 12 months (12 C.F.R. § 1026.36).

The seller's exemption depends on ownership, builder status, amortization, ability-to-repay, and rate-limit conditions specific to the transaction. The engagement flags which exemption (if any) applies and structures the documents accordingly.

Flat-fee drafting for standard seller-financing packages (note, deed of trust, and closing instructions). Capped pricing for review of a counterparty's draft. Turnaround typically three to five business days.

Send a short summary of the deal — property, parties, sale price, down payment, and proposed terms. Pricing and turnaround generally returned within one business day.