This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
The terms of payment of the consideration should be clearly set forth in the contract. If there be a mortgage outstanding, subject to which the property is to be sold, the amount of this mortgage forms part of the consideration. If the mortgage had previously been executed by the seller, so that the seller, at the time of closing the contract is personally liable, he may desire to relieve himself, to some extent, of this liability, and can do so by inserting a clause in the contract, that the purchaser, taking subject to such mortgage, will assume, and agree to pay it. If the seller is not liable personally on the bond and mortgage, he may contract to sell merely subject thereto, without imposing on the purchaser the obligation to pay the same. If a portion of the consideration is to be paid by the execution, on the part of the purchaser of a bond and mortgage, the provisions to be inserted in the bond and mortgage should be carefully stated, and it would also be proper to specify that the purchaser should pay the mortgage tax to be imposed thereon, and the fees for drawing the papers, and recording the mortgage. If it is desired that the purchaser should personally execute such bond and mortgage, in contrast with some one to whom the contract may be assigned, and who may not be as financially competent, a proper clause should be inserted in the contract to safeguard it. The balance of the consideration is usually paid in cash at the time and place specified for the delivery of the deed. Some purchasers, in order to avoid the inconvenience incident to making a legal tender in cash, specify that the final, or balance payment, may be made in cash, or by a certified check. It would be proper precaution for the. seller, in such a case, to specify that the check should be drawn upon a solvent bank.