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

Whether you can structure a seller-financed deal with a flat simple interest charge instead of traditional amortization depends on your state's lending laws, and you should consult an attorney before finalizing the terms. Kansas does allow seller financing, but there are consumer protection laws and usury limits that govern the terms. The federal Dodd-Frank Act also applies to seller-financed transactions in some cases, particularly if you're making more than one seller-financed sale in a 12-month period. For a one-off sale of a commercial property, you have more flexibility than you would on a residential deal. The structure you described, $115K with a one-time 10 percent simple interest charge and $1,055 per month for 120 months, is essentially a fixed-payment installment sale. The math works out, but make sure the terms are clearly documented in a promissory note and secured by a deed of trust or mortgage on the property so you're protected if the buyer defaults. Have a real estate attorney in Kansas draft the contract, promissory note, and security instrument. They'll make sure the deal complies with state law, that your lien is properly recorded, and that you have recourse if payments stop. Trying to DIY the paperwork on a $115K seller-financed deal is asking for trouble.

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.

Owner financing a commercial property is essentially a private loan, so you have a lot of flexibility, but you still need to comply with state usury laws and document the transaction properly. In Kansas there is no general interest‑rate cap on commercial loans between sophisticated parties, but there are restrictions on loans secured by a principal residence. You’ll want a written purchase agreement and a promissory note that spells out the sales price, down payment, interest rate, how payments are calculated and when they are due, plus provisions for late fees, default and prepayment. A deed of trust or mortgage should be recorded to secure your interest in the property. Charging a one‑time 10% fee and then calculating equal monthly payments over 10 years is effectively the same as charging interest, so you should treat it as such. A title company or attorney can prepare an amortization schedule so both parties understand how much of each payment goes to principal and interest and what the balance will be if the buyer pays off early. Depending on your other business activities you may need to comply with Dodd‑Frank and SAFE Act regulations, but those typically apply to seller financing of consumer residential properties rather than commercial buildings. In short, yes, you can structure seller financing for a commercial building, but use a real estate attorney or experienced title company to draft the documents so the note is enforceable and complies with Kansas law. They can also advise whether your proposed interest and fee structure is permissible and help you file the appropriate security instruments.

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.