Home Buying in Phoenix>Question Details

Wayne Brown, Home Buyer in Chino Valley, AZ

can home owner in az ask for nonrefundable deposit on owc?

Asked by Wayne Brown, Chino Valley, AZ Sun Jun 9, 2013

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Hi Wayne:

If we all agree "OWC" represents a transaction where the current owner of the home is willing to let the Buyer owe them the bulk of the purchase price (vs. financing with a "normal mortgage"), and requiring a certain percentage of downpayment at Closing, so the Buyer has some "skin in the game" (making it more likely they will repay the Seller what is due them), the only deposit I can think of is the earnest money deposit. This is usually governed by the terms of a standard Buy/Sell contract (with certain circumstances wherein the buyer gets it back, and others wherein the Seller gets to keep it.).

As mentioned, you can make this earnest money deposit nonrefundable, but I would ask myself if it is going to help sell the home, and if not, I would look to the contract and eliminate one more issue.
0 votes Thank Flag Link Sun Jun 16, 2013
pardon my ignorance... what's OWC ?

Martina R. Enriquez.
0 votes Thank Flag Link Mon Jun 10, 2013
All thing are negotiable. He can ask and then you get to respond.
0 votes Thank Flag Link Sun Jun 9, 2013
If indeed you mean Owner Will Carry, then the terms of the deal are whatever the parties agree to.
0 votes Thank Flag Link Sun Jun 9, 2013
Owner will carry - that's what you mean by the abbreviation, right? There are no deposits, title is transferred to the new owner.
0 votes Thank Flag Link Sun Jun 9, 2013
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