Vendor is a person who is selling their property and the person who is purchasing the property is the purchaser. When we are buying a property that involves lot of cash and a good amount of investment as the real estate market is growing and the rates are property are high and in this it may happen you would not have that amount in liquid cash and thus that is when the vendor finance comes in to existence.

In this vendor finance scheme the vendor that is the seller pays the amount on the behalf of the purchaser. In this people agree on the terms and the conditions that are set by the vendor then only the deal is taken further. Till the time the whole amount is paid by the purchaser to the vendor the property remains on the name of the vendor and when the whole amount is paid the property is transferred to the purchaser. Purchaser is allowed to use the property till that time. This is a very convenient option for both the parties and it is better than taking a bank loan.  People can pay at their convenience and they do not have to face any problems as well.

There are two parties involved when you are going in the market to buy or sell something. There always will be a buyer and a seller. People when they plan to buy some property may be a shop or some land or anything they are called as the purchaser as they are planning to purchase some property and the person who is selling their property is called as the vendor. Buying a property involves a huge amount of money and many a times people have to take a loan because they have a deficiency of liquid cash and thus this is the time when the Vendor finance comes in the picture.

Vendor finance is a new scheme where the Vendor that is the seller will pay the money as a loan and help the purchaser. Till the time the whole amount is paid by the purchaser to the vendor the property remains on the vendors name but the property can be used by the purchaser. There are some terms and conditions which will be made by the vendor and the purchaser will have to agree to the contract and then only this can be worked out.