Posted by LJ on January 27, 2002 at 01:14:56:
Hi. I believe it refers to when the seller holds a land contract/note on the property for a percentage of the purchase price. If it is 20%, some banks will accept this as your down payment.
Scenario: seller is an investor who wants to sell the property but doesn’ want all the cash at once, because he does not have enough expenses this year to offset teh capitol gains. He may hold a note for part of the purchase price. Hope this helps