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Can I sell a commercial bldg w/o charging interest in KS?

I own a bldg in Osawatomie, Ks and I want to sell it, $115,000 with a simple interest of 10% ( a one time charge, not amortization). With a payback of $1,055.00 monthly for 120mo. Can I legally do it this way ??
Asked By Sharon Bickerstaff | Osawatomie, KS | 1195 views | Tips Advice | 2 months ago
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120 Answers
Jason Craig

Coldwell Banker

Sharon, owner financing is possible in Kansas, but the way you structure it really matters. What you’re describing sounds more like a private note than a traditional mortgage, and those details—like charging a flat “one-time” interest versus amortized interest—can get tricky legally. In Kansas, seller-financed deals are done all the time, but they usually follow standard promissory note and mortgage/deed of trust formats to protect both sides. I’d strongly recommend sitting down with a local real estate attorney or title company to draft the paperwork so it’s enforceable and clear for everyone.
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8 Answers
Karen Burkardt

Realty One Group

(27)

Yes, you can sell a commercial building in Kansas with seller financing, but you need to structure it correctly. You can choose to charge interest however you want, but it must be written into a legally binding promissory note and secured by a mortgage or deed of trust on the property. What you describe—a “one-time” simple interest charge at 10% with fixed monthly payments over 120 months—isn’t typical and could be challenged if it isn’t clearly spelled out, since most seller-financed deals use amortization or standard interest accrual. As long as both parties agree in writing, it can be done, but you must comply with Kansas usury laws (which generally allow higher interest on commercial transactions than on consumer loans) and federal disclosure requirements.

Recommendation: Have a real estate attorney draft the promissory note and mortgage documents to make sure your structure is enforceable.
Next step: Confirm with a Kansas attorney or title company that your proposed terms comply with state usury and financing laws before moving forward.

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