In seller financing, the seller is considered the:

In the context of seller financing, the seller is referred to as the payee. This terminology stems from the nature of the transaction, where the seller provides the financing to the buyer. The buyer, in turn, makes payments to the seller for the property over time. In this arrangement, the seller acts as the individual or entity receiving the payments—that is, the payee.

The concept of seller financing typically involves a promissory note or a similar document that outlines the terms of the loan, including the payment schedule and interest rate. Since the seller is the one lending the money for the purchase of their property, they are the party that receives the payment, thereby confirming their position as the payee in this financial relationship.

Understanding this role is crucial because it underscores the seller's control over the terms of the financing agreement and their rights in case of default on payments by the buyer.