Seller Financing in Provo, Utah: Rentals, Fourplexes, and Long-Time Owners
How Provo seller financing works on rentals, small multifamily buildings, and older homes, from a Utah attorney with a posted flat fee.
Informational onlyThis page is general information about Utah law, not legal advice for your situation. Reading it doesn't create an attorney-client relationship. Read the disclaimer.
Seller financing in Provo works the way it works everywhere in Utah. The seller carries a promissory note, and a recorded trust deed secures it. This page covers the Provo deals that look different: a rental near campus, a duplex or fourplex with tenants in place, or an older home a long-time owner is finally ready to sell to an investor.
How does seller financing work on a Provo rental or fourplex?
It uses the same note and trust deed, but the tenants come with the building. The buyer steps into the existing leases. Security deposits, prepaid rent, and utility accounts all move at closing.
Say you own a fourplex near campus. You agree to sell for $640,000. The buyer puts $128,000 down, and you carry $512,000 at 7% on a 30-year schedule with a seven-year balloon. That note is secured by a trust deed on the building, not on the buyer's other properties.
Before you sign, collect four things:
- A current rent roll with lease end dates for each unit.
- A list of security deposits you are holding, unit by unit.
- Copies of every written lease and any side deals with tenants.
- The buyer's plan for the building, in writing.
A one-to-four-unit building is usually handled like a house. Five or more units is a different analysis. Tell your attorney the unit count on the first call.
What should a long-time Provo owner watch for when an investor offers terms?
Watch the down payment and the exit. An investor who puts little down has little to lose if the plan changes. A larger down payment is your cushion if you ever take the property back.
Ask what the investor plans to do. Some rent the building for years. Some renovate and resell quickly. If they plan to resell, your note should say what happens then. A due-on-sale clause in your own note lets you require payoff if the buyer sells.
Ask who the buyer is. Many investors buy through an LLC. If the LLC has no other assets, a personal guaranty from the owner gives you someone real to collect from.
"Legally allowed to" and "actually goes well" aren't always the same thing. An investor's offer can be legal and still leave you carrying most of the risk.
What interest rate can a Provo seller charge?
Any rate the two of you agree to in writing. Parties to a lawful Utah contract may agree on any rate of interest, and the legal rate without an agreement is 10% a year (Utah Code § 15-1-1).
That freedom cuts both ways. A rate far above the market invites a buyer to refinance early. A rate far below it can create tax questions for you. Run the payment in the seller-carry calculator before you settle on a number.
What happens if a Provo investor buyer stops paying?
You foreclose under the trust deed, and the clock is measured in months. Before recording a notice of default on an owner-occupied residential loan, the beneficiary sends a written notice giving at least 30 days to cure (Utah Code § 57-1-24.3). A rental bought by an investor may not be owner-occupied, so that step may not apply. Many sellers send a written notice anyway.
| Question | Owner-occupied home | Investor rental |
|---|---|---|
| 30-day pre-default notice | Applies | May not apply |
| Who lives there | The buyer | The buyer's tenants |
| Rent during default | None | The buyer may still collect it |
| What to plan for | Buyer moving out | Tenants staying through the process |
The foreclosure timeline tool computes the dates from a default date. The default and foreclosure guide explains each step.
Should an older Provo home be sold as-is with seller financing?
It can be, but "as-is" doesn't erase disclosure. Leaky roof you patched three years ago? Disclose it. Old wiring, a tired sewer line, or a basement that took water once all belong on the form.
This matters more when you carry the note. If the buyer later claims you hid a defect, they may stop paying and argue offsets. A clean disclosure record protects your note as much as your sale.
Insurance matters too. Require the buyer to carry a policy that names you as the lender. An older home that burns is still security for your note.
Who collects the rent and the note payment?
The buyer collects the rent, and the buyer pays you. Keep those two streams separate. Your note payment is owed whether or not a unit sits empty.
A third-party servicer can collect your payment, track the balance, and send year-end interest statements. That gives both sides a neutral record. It also helps the investor later, because a lender reviewing a refinance will want a clean payment history.
Settle the escrow question too. Decide who pays the property taxes and the insurance, and how you will know they were paid. Many sellers ask for proof of insurance every year and a copy of the tax notice each fall.
What does the legal work cost on a Provo deal?
Greg's flat fee is $750. It covers a promissory note drafted for your terms, the trust deed ready to record, a review of the Seller Financing Addendum and purchase contract terms, a closing-instruction letter to the title company, a servicer setup letter, one round of revisions, and a 30-minute planning call. Multi-property or entity-structured deals, such as an investor buying several rentals through an LLC, move to hourly. You'll know which before work starts.
Where do Provo seller-financing documents get recorded?
With the Utah County Recorder, a short drive from most Provo neighborhoods. The Utah County Recorder charges $40 per document and $5 per certification (recorder fee schedule, checked 2026-09-25). The office is at 100 East Center St., Suite 1300, Provo, UT 84606, 801-851-8179.
The deed to the buyer and the trust deed securing your note are both recorded. Each page must be 8½ by 11 inches with one-inch margins and a legal description that meets the statewide standard (Utah Code § 17-71-402). Utah recorders have accepted electronic recording statewide since January 1, 2022 (Utah Code Title 17, Chapter 71). A Utah title company usually handles the recording at closing.
Which guides matter most for a Provo deal?
Start with the complete Utah seller financing guide for the full structure. If your buyer is an investor, read the default and foreclosure guide before you set the down payment. Then read the servicing and taxes guide so payments and interest reporting are set up correctly.
For the rest of the county, see the Utah County overview, or compare the Orem page if you own a duplex there too.
What Greg would tell you
"If an investor is buying your rental on terms, look hardest at the down payment and the tenants. The down payment is your cushion, and the tenants are the part everyone forgets until closing week. Get both on paper before you agree to the rate."
Frequently asked questions
Can I seller-finance a rental property in Provo?
Yes. A rental can be sold with a seller-carry note secured by a recorded trust deed. The tenants, their leases, and their deposits carry over to the buyer, so the closing needs a checklist for those too.
Is a fourplex treated like a house for seller financing?
For many purposes a one-to-four-unit building is treated as residential. A building with five or more units is a different analysis, so tell your attorney the unit count on the first call.
What interest rate should I charge an investor buyer in Provo?
Utah has no cap on an agreed written rate, so the number is a negotiation. Most sellers look at the buyer's down payment, the term, and the balloon date, then set a rate they can defend.
What if my Provo investor buyer stops paying?
A seller holding a trust deed can foreclose through a Utah attorney or title company as trustee. The process takes months, so reserves and a servicer's payment history matter from day one.
Do I need a lawyer if the investor already has paperwork?
You should have someone on your side read it. Paperwork drafted by the buyer is drafted for the buyer. A seller-side review is part of what the flat fee covers.
This site is for general information about Utah law and is not legal advice. Using it does not create an attorney-client relationship. Every transaction is different — talk to an attorney about yours. Attorney advertising.
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