Seller installments on a Mardakan house: 2026 terms
Every third MARDECO deal closes through seller installments, not through a bank. This is not a grey scheme — set up properly, it is fully legal, transparent, and often more profitable than a mortgage. Here are the mechanics and the risks.
How it works legally
Title passes to the buyer after the down payment, subject to a registered encumbrance in favour of the seller for the remaining balance. That encumbrance is filed with the registry and lifted only after the final payment. The buyer lives in, renovates and uses the house — but cannot resell until settlement.
Typical 2026 terms
| Parameter | Range |
|---|---|
| Down payment | 30–50% |
| Term | 12–36 months |
| Interest | 0–3% p.a. (0% typical) |
| Schedule | monthly / quarterly |
| Late penalty | 0.1–0.3% per day |
| Early repayment | no penalty |
The big advantage is 0% interest. A 3-year mortgage at 7% costs about 11% in total interest; sellers commonly accept 0% installments over the same period in exchange for a fast deal.
When installments beat a mortgage
- Grey income, but 30–50% of the price in hand.
- Fast timeline needed — installments close in 3–5 days, a mortgage in 2–3 weeks.
- The house doesn't fit bank criteria (old build, «garden» land use, valuation gap).
- Loan need exceeds the state programme cap.
Risks — and how to close them
Buyer risk: the seller dies or goes bankrupt before the final payment. Fix: register the encumbrance on the day of sale, not «later».
Seller risk: the buyer stops paying. Fix: court-driven repossession and auction sale — takes 6–12 months.
Must-have clauses in the contract
- Exact payment schedule with dates and amounts.
- Free early repayment clause.
- Default terms (usually 60–90 days).
- Notary certification and registry filing.
See also: mortgage vs installments, 7% mortgage, title deed matters.
Find a seller open to installments
Message «EV» on WhatsApp — 3–5 owners in Mardakan ready for 0% installments over 12–24 months.