A loan purchase agreement is a written document signed between a seller of loans, like a financial institution, and a buyer of loans, which may be an individual or an organization, usually referring to a purchase of a property by the buyer. Here the buyer of the property takes a loan of almost the whole amount required to purchase the property or part of the amount and he enters into this agreement which lays down the terms and conditions of when the amount must be paid, what is the rate of interest and how much money will be paid back.
These points must be made clear in the agreement so that there is no problem or conflict between the two parties in the future. Most of these loans are given by banks and so there must be clear information about terms like down payment, amount of installments, interest and conditions under which the agreement will be terminated.
[Also Read: The Basics of a Loan Agreement]
Sample for Loan Purchase Agreement
A sample of the agreement can be downloaded from below.
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