Max On Prepayment Penality Seller Can Charge?
What is the maximum a seller could charge for a prepayment penality for commercial property seller financing?
I am aware of 6 months on residental property. Would there be a requirement difference between residental and commercial. I have yet found anything related to commercial property on seller financing.
When I recommended to the seller 6 months ... he said that was "not enough money".
The seller wants to charge 1 year prepayment penality. Interest payments would be around $3,500 per month x 12 = $42,000 would be 1 year prepayment penalty if loan paid off within 5 years.
Cheryl Lopez
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