Provided that on closing, the Buyer developer pays at least 50% of the purchase price in cash, it may be beneficial to the Seller to take back a Mortgage for the balance if the interest rate on such unpaid balance is commercially competitive or better. A Vendor Take-Back Mortgage assists the Buyer developer while it is conducting its planning approvals and cannot commence construction. For the Seller farmer, a Vendor Take-Back Mortgage may prove to be a good safe investment yielding a good rate of interest. We would typically insist upon a reasonable rate of interest, a relatively short term of not more than three years, a reasonable principal and interest payment schedule during such term, and the registration of the Mortgage in the first position with no or very limited postponement rights or partial discharge provisions. Other terms are negotiated depending upon the parties’ needs.