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Why would a seller make a sale to a buyer that has no money the seller can use?
Wiki User
∙ 14y ago
The seller can use other means to recap the money. Countertrade can be used to provide back a means of paying for the original goods.
Wiki User
∙ 14y ago
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Does the seller to pay closing cost?
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
Is the buyer or seller responsible for title insurance?
Here in California, it is a matter of local custom. In Southern California, typically the seller agrees to purchase the owners policy for the buyer, the buyer supplies the title insurance for the lender. In Northern California, the buyer typically pays for both policies. It is, however, a matter that is covered in the contract between the seller and buyer and is negotiable, as is everything else. All closing costs can be negotiated as part of the sales contract. Who pays for title insurance varies from state to state based on local custom, but can be negotiated between the buyer and seller as part of the sales contract. There are no laws providing for either party to be required to pay. In the case where the seller has elected to pay title expenses, the buyer needs to make sure that the Lender has approved those fees to be paid by the seller. Some types of mortgages require that the buyer/borrower have a certain amount of funds available for the closing fees and may "cap" what fees can or cannot be paid by the seller in behalf of the buyer.
What is advance payment guarantee?
buyer will sometimes make an advance payments to the seller to enebled them to start acquisition or production of goods.
What is a creative home loan?
When someone wants to buy a home, but they are unable to gather enough money to pay for it (cash for equity + loan proceeds), then the buyer and seller are going to have to get "creative" if they are going to be able to close the transaction. Unfortunately, getting "creative" sometimes means being subversive. A common example is the wrap-around mortgage when the seller's mortgage has a "Due On Sale" clause. With this clause, the buyer will not be allowed to assume the mortgage, but must get a new loan. The seller is supposed to pay off the old loan. But, let's say the buyer is not able to qualify for a new loan and the seller is willing to try to keep any knowledge of the sale from his lender. Let's say the seller's loan is at a low interest rate of 5% and has a current balance of $80,000. The seller might agree to sell the house to the buyer for $100,000. The seller accepts a note from the buyer (a loan) for the purchase price of $100,000 (nothing down) with an interest rate of 8%. Each month, the buyer pays the seller who in turn, sends part of the money to his mortgage company as payment on the original loan. To make sure the seller keeps making payments on his loan, the buyer often insists on making payment to an escrow company (or attorney) who will forward a portion to the original lender as a loan payment and remit the balance to the seller. The buyer gets a house he cannot otherwise obtain. The seller has actually made a loan of $20,000 to the buyer (the seller's equity in the property was loaned to the buyer, since there was no cash downpayment). But what does the seller earn on that $20,000 loan? First, he receives 8% interest on $100k each year. That's $8,000 per year. Second, he has to pay 5% on the $80k he owes. That's $4,000 per year. So, the seller is NETTING $4,000 (8 - 4 = 4) per year that he gets to keep. That is a 20% rate of return on his $20,000 loan to the buyer. That's a creative home loan. There are other ways to be creative -- such as obtaining a lease with an option to buy (where the tenant gets credit for part of the rent toward the purchase price).
What is Inland letter of credit?
Inland Letter of Credit is issued to meet out the credit requirement for domestic trade. This is a form of no fund based credit extended by the banks. This is given to he seller of the goods on behalf of the buyer by the bank where the buyer deals. It offers the comfort of obligation from the banker to the issue of the Inland letter of credit that they undertake to make good of the loss. If any in the case of non payment of the amount as accepted by the buyer. As such the seller of the goods can take finance by tendering the bills along with the ILC to his banker before the proceeds are realized.
How paypal works?
It is up to the buyer to decide in what manner they want to make a purchase. After deciding, Paypal safely executes the transaction by sending the money to the seller. Finally, it is up to the seller to decide how the money will be spent.
What is the role of buyer?
The major role of buyer is to make the seller aware about his needs and wants And what are his expectation from the product.
What is the buyer's role?
The major role of buyer is to make the seller aware about his needs and wants And what are his expectation from the product.
What is a bank soft probe?
As described by Wikipedia "A soft probe is a confirmation method used by banks to verify funding for a seller from a buyer, conducted by the seller's bank to the buyer's bank. Such a probe is not recorded in the buyer's banking information, and usually nothing but confirmation or lack of confirmation is recorded by the seller."Seller sends a soft document to buyer's bank to make certain buyer has enough funds or financial facility to complete transaction between them.
What does the term mutually beneficial economic partnership mean?
A mutually beneficial economic partnership is where both the buyer and the seller benefit from the exchange of goods (or money for goods) without being exploited: The seller offers their goods or service at a reasonable price without attempting to maximize profit while the buyer responds in kind by not attempting to undercut the Seller and make him lose profit.
Does the seller to pay closing cost?
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
In Alabama how can a seller recover a court ordered balance if the vehicle is totaled and the buyer has no money and is not willing to make payments?
IF they have JUDGEMENT, THEY CAN GARNISH YOUR WAGES OR ATTACH OTHER PERSONAL PROPERTY.
What does owner will carry mean when buying a car?
I think it may mean that the seller of the vehicle will "hold the loan" or will let the buyer make payments to them and once paid in full, seller will then sign title over to buyer.
What are the features of a hire purchase system?
buyer and seller make written and legal agreement between them
If a seller in contract agrees to pay all taxes until sale can they make buyer pay taxes instead?
No. The seller must honor the contract.
Why would one choose to use a car broker?
If one was a first time buyer or unsure about how to buy a car then a broker can help by liaising between buyer and seller. It can make the process less stressful and time consuming.
When selling a gun what type of receipt should you give?
Not required by law, but I use a "bill of sale", listing name of buyer AND seller, make, model, and serial number of firearm. Two copies. Buyer and seller sign both copies, I keep one, buyer gets one.
