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Seller Financed Transfer Structures

Seller-financed transfer structures, installment sales, wraparound mortgages, and leaseback terms.

Seller Financed Transfer Structures covers seller financing, owner financing, wraparound mortgages, purchase-money mortgages, and installment-sale financing structures.

Use these pages when the property seller provides credit or remains financially involved in the buyer financing. It sits inside Seller Financing, so readers can move up when the broader property-finance context matters.

Use the table below to choose the narrower mortgage or real-estate finance branch before applying a term to a loan file, closing record, servicing review, investor report, appraisal, or valuation model. Move into the term page when the document, calculation, party role, lien position, or property cash flow matters.

What This Branch Covers

AreaUse it for
All-Inclusive Trust Deed (AITD)An All-Inclusive Trust Deed (AITD) is a financial arrangement where an existing mortgage is wrapped within a new, larger loan.
Installment SaleAn installment sale is a transaction in which the buyer pays the purchase price over time in periodic installments, rather than paying the entire amount up front.
Instalment SaleAn instalment sale is a financing arrangement where the buyer makes a series of scheduled payments to the seller over time to purchase an asset.
Purchase-Money MortgageSeller-financed mortgage created as part of a property sale, often used when the seller funds some or all of the purchase price directly.
Sale LeasebackA Sale Leaseback (or Sale-and-Leaseback) is a financial transaction in which one party sells an asset and then leases it back from the buyer.
Wrap-Around LoanA wrap-around loan is a specialized finance structure used predominantly in real estate transactions, particularly in owner-financed deals.
Wraparound MortgageSeller-financed mortgage that wraps a new loan around an existing underlying mortgage instead of paying the older debt off at sale.

What to Check

  • Purchase agreement, promissory note, mortgage, deed of trust, wraparound terms, and existing lien status.
  • Seller credit amount, payment schedule, interest rate, maturity, default rights, and collateral position.
  • Due-on-sale clause, senior lien consent, title record, insurance, and escrow arrangements.
  • Effect on buyer affordability, seller risk, lien priority, tax timing, and enforceability.
  • Jurisdiction-specific legal and disclosure requirements.

Common Mistakes

  • Assuming seller financing avoids lender or title risk.
  • Ignoring existing mortgage restrictions and due-on-sale clauses.
  • Comparing seller financing without default, lien, and tax context.
  • Treating wraparound and purchase-money structures as identical.

Seller-financing content is educational and does not provide legal, tax, lending, title, or transaction advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

All-Inclusive Trust Deed (AITD)

An All-Inclusive Trust Deed (AITD) is a financial arrangement where an existing mortgage is wrapped within a new, larger loan.

Installment Sale

An installment sale is a transaction in which the buyer pays the purchase price over time in periodic installments, rather than paying the entire amount up front.

Instalment Sale

An instalment sale is a financing arrangement where the buyer makes a series of scheduled payments to the seller over time to purchase an asset.

Purchase-Money Mortgage

Seller-financed mortgage created as part of a property sale, often used when the seller funds some or all of the purchase price directly.

Sale Leaseback

A Sale Leaseback (or Sale-and-Leaseback) is a financial transaction in which one party sells an asset and then leases it back from the buyer.

Wrap-Around Loan

A wrap-around loan is a specialized finance structure used predominantly in real estate transactions, particularly in owner-financed deals.

Wraparound Mortgage

Seller-financed mortgage that wraps a new loan around an existing underlying mortgage instead of paying the older debt off at sale.

Revised on Sunday, June 21, 2026