# SFSB-2: Seller Disclosure Statement **Seller Finance Standards Board | Published: 2026 | Version 1.0** --- ## Purpose This Seller Disclosure Statement establishes a uniform disclosure standard for note sellers prior to the sale of a seller-financed note. Complete and accurate disclosure protects buyers from material misrepresentation, reduces post-closing disputes, and promotes integrity and transparency in the seller finance marketplace. This form is intended to be completed by the note holder (Seller) and delivered to the prospective buyer no later than the commencement of formal due diligence. ## Scope This disclosure form applies to any sale or assignment of a seller-financed promissory note arising from the sale of a business, commercial real property, or business assets. It is the responsibility of the Seller — not the note broker or any intermediary — to complete this form accurately and in full. Incomplete or evasive responses are treated by the SFSB as a material disclosure failure. --- ## SELLER DISCLOSURE STATEMENT **Date of Disclosure:** ____________________ **Note Reference / Deal ID:** ____________________ **Name of Seller (Note Holder):** ____________________ **Seller Entity Type:** ☐ Individual ☐ LLC ☐ Corporation ☐ Trust ☐ Other: ____________ **Seller Contact / Representative:** ____________________ Phone: ____________________ Email: ____________________ **Prospective Buyer (if known):** ____________________ --- ## SECTION 1 — NOTE IDENTIFICATION *Complete all fields. If a field is not applicable, enter "N/A." Do not leave any field blank.* **1.1 Note Date (Date Promissory Note Was Executed):** ____________________ **1.2 Original Principal Balance:** $____________________ **1.3 Current Unpaid Principal Balance (UPB) as of Date of This Disclosure:** $____________________ **1.4 Interest Rate:** ______% per annum ☐ Fixed ☐ Variable (describe index and margin below) Variable rate description (if applicable): ____________________________________________ **1.5 Loan Term:** ____________________ (e.g., 60 months, 10 years) **1.6 Scheduled Monthly Payment Amount (principal + interest):** $____________________ **1.7 Balloon Payment:** ☐ Yes ☐ No If yes: Balloon Amount: $____________________ Balloon Due Date: ____________________ **1.8 Number of Scheduled Payments (Total):** ____________________ **1.9 Number of Payments Remaining as of This Disclosure Date:** ____________________ **1.10 Next Payment Due Date:** ____________________ **1.11 Note Maturity Date:** ____________________ **1.12 Is This a Full Note Purchase or Partial Purchase?** ☐ Full note ☐ Partial (payments being sold: ____________________ through ____________________) **1.13 Is There a Prepayment Penalty?** ☐ Yes ☐ No If yes, describe: ____________________________________________ **1.14 Is the Note Secured?** ☐ Yes ☐ No If yes, describe collateral (see also Section 3): ____________________________________________ --- ## SECTION 2 — PAYMENT HISTORY DISCLOSURE *Seller must attach a complete payment ledger as Exhibit A to this Disclosure Statement. The summary below supplements but does not replace the full ledger.* **2.1 Total Number of Payments Scheduled Since Origination:** ____________________ **2.2 Total Number of Payments Actually Received:** ____________________ **2.3 Total Number of Payments Received on Time (within grace period):** ____________________ **2.4 Total Number of Late Payments (received after grace period expiration):** ____________________ **2.5 Number of Payments Received More Than 30 Days Late:** ____________________ **2.6 Number of Payments Received More Than 60 Days Late:** ____________________ **2.7 Number of Payments Received More Than 90 Days Late:** ____________________ **2.8 Number of Returned / NSF Payments:** ____________________ **2.9 Has the Borrower Ever Been Placed on a Formal Delinquency / Cure Notice?** ☐ Yes ☐ No If yes, describe outcome: ____________________________________________ **2.10 Current Payment Status as of This Disclosure Date:** ☐ Current (within grace period) ☐ 1-29 Days Past Due ☐ 30-59 Days Past Due ☐ 60-89 Days Past Due ☐ 90+ Days Past Due **2.11 Most Recent Payment Received:** Date: ____________________ Amount: $____________________ **2.12 Are There Any Outstanding Amounts Due (late charges, NSF fees, etc.) Not Captured in the UPB?** ☐ Yes ☐ No If yes, amount and description: ____________________________________________ --- ## SECTION 3 — COLLATERAL DISCLOSURE **3.1 Type of Collateral:** ☐ Business assets (equipment, inventory, accounts receivable, goodwill) ☐ Real property ☐ Both business assets and real property ☐ Other: ____________________________________________ **3.2 Collateral Address / Description:** ____________________________________________ **3.3 Current Use of Collateral:** ____________________________________________ **3.4 Seller's Estimate of Current Collateral Value:** $____________________ Basis of estimate: ☐ Formal appraisal (date: ________________) ☐ CIM/broker opinion ☐ Seller estimate ☐ Other: ______ **3.5 Lien Position of This Note:** ☐ First lien ☐ Second lien ☐ Third or junior lien ☐ Unsecured **3.6 Are There Senior Liens on the Collateral?** ☐ Yes ☐ No If yes, total outstanding senior lien balance: $____________________ Held by: ____________________ **3.7 Are There Junior Liens on the Collateral?** ☐ Yes ☐ No If yes, describe: ____________________________________________ **3.8 For Business Asset Collateral — UCC Filings:** UCC-1 Financing Statement filed: ☐ Yes ☐ No Filing state: ____________________ Filing number: ____________________ Filing date: ____________________ **3.9 For Real Property Collateral — Deed of Trust / Mortgage:** Instrument recorded: ☐ Yes ☐ No County and state of recording: ____________________ Instrument / book-page number: ____________________ **3.10 Is Collateral Insurance Currently in Force?** ☐ Yes ☐ No If yes: Insurer: ____________________ Policy number: ____________________ Expiration date: ____________________ Named insured: ____________________ Is Seller/Buyer named as additional insured or loss payee? ☐ Yes ☐ No --- ## SECTION 4 — BORROWER DISCLOSURE **4.1 Borrower Legal Name:** ____________________ **4.2 Borrower Entity Type:** ☐ Individual ☐ LLC ☐ Corporation ☐ Partnership ☐ Sole Proprietor ☐ Other: ______ **4.3 Borrower State of Organization / Formation:** ____________________ **4.4 Business Name (DBA, if different):** ____________________ **4.5 NAICS Code / Industry:** ____________________ **4.6 Years Business Has Been in Operation:** ____________________ **4.7 Does a Personal Guaranty Exist?** ☐ Yes ☐ No If yes, name of guarantor(s): ____________________ **4.8 Is the Personal Guarantor the Same Individual as the Business Owner?** ☐ Yes ☐ No ☐ N/A **4.9 To Seller's Knowledge, Is the Business Currently Operating?** ☐ Yes ☐ No ☐ Unknown **4.10 Has There Been Any Change in Ownership or Control of the Borrower Business Since Note Origination?** ☐ Yes ☐ No ☐ Unknown If yes, describe: ____________________________________________ --- ## SECTION 5 — MODIFICATIONS DISCLOSURE *Disclose any and all modifications to the Note or payment schedule since origination, no matter how informal. Oral modifications must be disclosed.* **5.1 Has the Note Been Modified, Amended, or Restated?** ☐ Yes ☐ No If yes, for each modification complete the following: | Modification # | Date | Type of Change | Written or Oral | Signed by Both Parties? | |---|---|---|---|---| | 1 | | | | | | 2 | | | | | | 3 | | | | | **Types of change include:** payment deferral, interest rate change, maturity extension, principal reduction, balloon restructure, forbearance, or other. **5.2 Have Any Payments Been Formally Deferred or Forgiven?** ☐ Yes ☐ No If yes, amount deferred or forgiven: $____________________ Description: ____________________________________________ **5.3 Has the Note Maturity Date Ever Been Extended?** ☐ Yes ☐ No If yes, by how many months: ______ New maturity date: ____________________ **5.4 Have Any Late Charges or Fees Been Waived?** ☐ Yes ☐ No If yes, describe: ____________________________________________ --- ## SECTION 6 — LITIGATION AND LEGAL DISCLOSURE **6.1 Is There Any Pending or Threatened Litigation Involving the Note, Collateral, or Borrower?** ☐ Yes ☐ No If yes, describe: ____________________________________________ **6.2 Has Seller Issued a Notice of Default to Borrower?** ☐ Yes ☐ No If yes, date issued: ____________________ Outcome: ____________________________________________ **6.3 Has Seller Commenced or Threatened Foreclosure or Enforcement Action?** ☐ Yes ☐ No If yes, describe current status: ____________________________________________ **6.4 To Seller's Knowledge, Has the Borrower Filed for Bankruptcy or Has a Petition Been Filed Against Borrower?** ☐ Yes ☐ No ☐ Unknown If yes, case number and jurisdiction: ____________________ **6.5 Are There Any Outstanding Judgments Against the Borrower or the Collateral?** ☐ Yes ☐ No ☐ Unknown If yes, describe: ____________________________________________ **6.6 Are There Any Federal or State Tax Liens Against the Borrower or the Collateral?** ☐ Yes ☐ No ☐ Unknown If yes, describe: ____________________________________________ --- ## SECTION 7 — SERVICING DISCLOSURE **7.1 Who Is the Current Servicer of the Note?** ☐ Seller (self-serviced) ☐ Third-party servicer: ____________________ Contact: ____________________ **7.2 Are Payments Currently Being Made Directly to Seller?** ☐ Yes ☐ No **7.3 Is There an Active Servicing Agreement?** ☐ Yes ☐ No If yes, will it transfer to Buyer or terminate at Closing? ☐ Transfer ☐ Terminate ☐ TBD **7.4 Is There an Escrow Account (for taxes, insurance, or other items)?** ☐ Yes ☐ No If yes, current escrow balance: $____________________ Monthly escrow amount: $____________________ --- ## SECTION 8 — CERTIFICATION BY SELLER **The undersigned Seller hereby certifies, under penalty of rescission and subject to the indemnification provisions of the Purchase Agreement, that:** 1. All information provided in this Seller Disclosure Statement is true, accurate, and complete to the best of Seller's knowledge and belief as of the date first written above. 2. Seller has not knowingly omitted any material fact that would be relevant to a prospective buyer's evaluation of the Note. 3. Seller understands that a prospective buyer is relying on this disclosure in making its investment decision, and that any material misrepresentation or omission may give rise to rescission of the purchase agreement and/or a claim for damages. 4. Seller agrees to promptly update this Disclosure Statement if any information herein becomes materially inaccurate prior to Closing. --- **Seller Signature:** ________________________________ Date: ____________________ **Printed Name:** ____________________ **Title (if entity):** ____________________ --- **NOTARIZATION** *(required for real property collateral; recommended for all transactions)* State of ____________________ County of ____________________ On __________________, before me, the undersigned notary public, personally appeared __________________________, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity. Notary Public Signature: ________________________________ My commission expires: ____________________ [NOTARY SEAL] --- *Attach as Exhibit A: Complete Payment History Ledger* --- *This document is published by the Seller Finance Standards Board (SFSB) as a best practice guideline. It does not constitute legal advice. Members and users should consult qualified legal counsel for jurisdiction-specific requirements.* *© 2026 Seller Finance Standards Board. All rights reserved. Members may reproduce for internal use with attribution.*