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Seller Financing in St. George: Retirement Income, Second Homes, and Land

Seller financing in St. George and Washington County: carrying a note for retirement income, second homes, land and lots, and out-of-state buyers, from a Utah attorney's view.

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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 St. George follows the same Utah rules as the rest of the state. What stands out in Washington County are the people and the property. Retirees carrying a note for income, second homes, land and lots, and out-of-state buyers each need a different plan. Start with the risk to the seller, then the paperwork.

Carrying a note for retirement income

Some sellers here want the note for the monthly payment. That is a reasonable goal, and it carries a lender's risk. You are betting on one buyer, for as long as the note runs.

Think about the risk first. If the buyer stops paying, your income stops too. Foreclosure takes months and costs money up front. If you need a lump sum later, a note can be sold, but usually at a discount.

Then think about the tax side. Under the installment method, you report gain as payments arrive. Each payment carries gain equal to the payment times your gross profit percentage. Depreciation recapture is reported in the year of sale (26 U.S.C. § 453; IRS Pub. 537). Ask your tax preparer how that fits your other retirement income.

Consider the long view too. A 20-year note may outlast the seller. Your estate plan should say who receives the payments and who has authority to manage the note. Talk to your estate planning attorney about naming the note in your trust.

On a $525,000 sale with $105,000 down, you would carry $420,000. At 7% over 20 years, the payment is about $3,256 a month. The seller-carry calculator runs other terms, including a balloon.

Protecting the income stream

A note that pays your bills should be built to keep paying. These terms do most of the work:

  1. A real down payment. The more the buyer puts in, the less likely they are to walk away.
  2. A third-party servicer. Payments, late notices, and year-end statements come from someone neutral.
  3. Insurance and tax proof. The buyer sends proof every year, or the servicer collects both monthly.
  4. Late fee and default terms. Outside the Consumer Credit Code, late fees and prepayment terms are set by contract (Seller Financing Addendum § 2.1). Write them clearly.
  5. A plan if you need cash early. Decide now whether you would sell the note, and what discount you would accept.

None of these make a buyer pay. They make it easier to see a problem early and act on it.

Second homes and vacation properties

A second home sits empty part of the year. That changes the insurance. Make sure the buyer's policy covers a home that is not occupied full time, and names you as lender. A standard homeowner's policy may not fit.

If the buyer plans to rent the property short term, check the local rules before you agree to terms. Rules for short-term rentals are set locally and can change. The note and trust deed should keep the buyer responsible for following them.

Second homes also bring buyers who live somewhere else. That makes a third-party servicer more useful. The servicer collects the payment, keeps the records, and sends both of you a year-end statement.

Land and lots need a different analysis

Land is not a house without walls. Many of the rules written for home sales key off a dwelling. A bare lot changes that analysis, sometimes in the seller's favor and sometimes not. Have your attorney look at it fresh instead of reusing a home-sale checklist.

The practical questions are different too:

  1. Access. Is there recorded legal access, or only a dirt road everyone uses?
  2. Water and utilities. What does the buyer need to build, and who pays for it?
  3. Legal description. Is the parcel described exactly, with a survey if needed?
  4. Partial releases. If the buyer is paying for several lots, when is each lot released from your trust deed?
  5. Taxes. Who pays the property tax while the buyer is paying you?

If a land note runs with a small down payment, you have less cushion if you ever need to resell. Weigh that before you agree to the terms.

Out-of-state buyers and investors: do they need a Utah attorney?

A Utah property is governed by Utah law, wherever the buyer lives. The documents should be written for Utah recording and Utah foreclosure. Forms from another state often miss things a Utah title company will ask about.

One point matters most on the seller's side. Only an active Utah State Bar member with a Utah office, or a Utah-licensed title insurance company or agency, may exercise a trust deed's power of sale (Utah Code § 57-1-21). Name a trustee who qualifies. An out-of-state investor who names their home-state lawyer as trustee has made a slow foreclosure more likely.

Recording also matters to an out-of-state buyer. Recording a document gives constructive notice of it to everyone (Utah Code § 57-3-102). If you are buying from out of state, make sure your deed or trust deed is actually recorded.

Comparing the Washington County situations

SituationMain riskWhat to put in the documents
Retiree carrying a noteIncome stops if the buyer stops payingSolid down payment, servicer, estate plan for the note
Second homeVacancy and absent ownersInsurance that fits vacancy, short-term rental compliance, servicer
Land or lotsAccess, water, and resale valueSurvey, legal description, partial release schedule
Out-of-state buyer or investorNon-Utah forms and trusteesUtah documents, a qualified Utah trustee, recording confirmed

Which guides matter most here

Start with the complete Utah seller financing guide. If the note is your retirement income, read servicing and taxes for a Utah seller-financed note. For what happens if payments stop, see the default and foreclosure guide. Other counties are on the locations page.

Recording in Washington County

Greg's office is in Provo, in Utah County, and he works with clients statewide. A St. George sale can be documented and recorded without a trip north. Utah recorders have accepted electronic recording statewide since January 1, 2022 (Utah Code Title 17, Chapter 71).

Utah's statewide recording-fee section sets $40 per instrument (Utah Code § 17-71-407). Fees were amended again in 2026, so verify the current amount with the county recorder before closing.

Confirm the current fee and submission rules with the Washington County Recorder before closing.

What Greg would tell you

If this note is going to pay your bills in retirement, the down payment and the servicer matter more than the interest rate. I'd rather see a slightly lower rate on a buyer with real skin in the game. And if it's land, let's confirm access and water before we talk about terms at all.

Frequently asked questions

Is seller financing common in St. George?

We don't publish statistics on how common it is. This page covers the situations that fit the area: retirees carrying a note, second homes, land, and out-of-state buyers.

I'm retiring. Is carrying a note a good way to create monthly income?

It can be, but the income is only as reliable as the buyer and the documents. Plan for a down payment large enough to protect you, a third-party servicer, and what happens to the note if you die or need the cash early.

Can I seller-finance a lot or raw land in Washington County?

Yes, and land needs its own analysis. Confirm legal access, water, utilities, and the legal description, and add release terms if the buyer is paying for several parcels over time.

I live out of state and want to buy a St. George home on seller financing. Do I need a Utah attorney?

Utah property is governed by Utah law, so the documents should be written for Utah. A Utah-licensed attorney can review them for you remotely, and the closing can be handled by a Utah title company.

Can the documents be signed and recorded without a trip to St. George?

Usually, yes. Utah recorders have accepted electronic recording statewide since January 1, 2022, and a Utah title company can arrange remote or mobile notary signing.

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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