If the seller acts as a bank for the buyer, the buyer immediately owns the property, while the buyer of Rent-to-Own is in fact a tenant and does not own the property until he arranges his own mortgage and exercises his right or option to purchase the property. An example of vendor-take-back or seller financing is below. * And once you have purchased a property, should you take your trade credit extension at face value? Most buyers already have a primary source of financing through a financial institution when they enter into this type of agreement, so a seller`s withdrawal mortgage is often a second right of pledge on the property. If you`re working on a business acquisition, the seller may be more than just the person selling the business to you. He or she could also be one of the main sources of funding for the operation. When a buyer wants to buy a property and finance the purchase with a loan, the buyer normally goes to a bank or other financial institution to finance it. However, if the financing provided by the bank or financial institution is not sufficient to finance the purchase, the buyer may be obliged to seek a second pawn financing. A right of pledgeLienA legal right to assert a right of guarantee over immovable property that the owner of the property has made available to a creditor. A right of pledge is usually used because it simply refers to a claim or legal right in assets used for the payment of a debt. If the debt is not enforced, the lenders of the first right of pledge are repaid first and the second recorders receive a subsequent claim.