You're about to be the bank. Let's make sure you're a careful one.

Yes, but the due-on-sale clause is the risk you have to plan around. Federal law lets your lender enforce a due-on-sale clause when you transfer the home (12 U.S.C. § 1701j-3(b)(1)). A wrap or all-inclusive trust deed is not on the federal exemption list (12 U.S.C. § 1701j-3(d)). Before you sign, decide how the full balance would get paid if the lender calls it: a buyer refinance, your reserves, or a sale. The selling with a mortgage guide and the wrap spread calculator walk through the numbers.

Usually not, because Utah exempts a seller who carries back a trust deed on the property sold. The exemption in the Utah licensing act has no numeric cap on transactions (Utah Code § 61-2c-105(2)(i)). Federal rules are separate: the Reg Z seller-financer exclusions keep a qualifying seller out of the loan-originator definition (12 CFR § 1026.36). Those exclusions have conditions on property count, balloons, and rates. The licensing checker walks through six questions.

You and the buyer can agree on any written rate, and Utah sets no usury cap. If the contract states no rate, the legal rate is 10% a year (Utah Code § 15-1-1). The practical minimum comes from federal tax law: a note below the applicable federal rate can have interest imputed (26 U.S.C. §§ 1274, 483; Rev. Proc. 2025-32). The September 2026 long-term AFR is 5.12% (Rev. Rul. 2026-17). See seller financing interest rates in Utah for how sellers set a rate.

With a note and trust deed, you usually foreclose through a trustee's sale without going to court. Only a Utah attorney or a licensed Utah title company can exercise the power of sale (Utah Code § 57-1-21). On an owner-occupied home, you first send a written notice giving at least 30 days to cure (Utah Code § 57-1-24.3). After the notice of default is recorded, the buyer has three months to reinstate (Utah Code § 57-1-31). The sale comes after that, with no redemption afterward (Utah Code § 57-1-28). The foreclosure timeline tool computes the dates.

You can collect payments yourself, but a third-party servicer keeps a cleaner record. Utah's Department of Financial Institutions gives a private seller hiring a third party to receive payments as its own example of escrow-agent work (Utah Code Title 7, Chapter 22 (Independent Escrow Agents)). A casual lender making fewer than five mortgage loans a year is exempt from DFI notification (Utah Code § 70D-2-103). A servicer tracks the balance, sends year-end statements, and gives both sides one set of numbers. More in third-party note servicing.

Greg Hansen prepares the standard seller-financing package for a flat fee of $750. That covers the promissory note, the trust deed or all-inclusive trust deed, review of the addendum and REPC terms, a closing-instruction letter, a servicer setup letter, one round of revisions, and a 30-minute planning call. Hourly work covers negotiating with the other side's attorney, requesting the underlying lender's consent, multi-property or entity deals, and litigation or default work. Lender-consent requests come up because of the due-on-sale clause on the existing loan. The first 15-minute call is free; see services.