Charge rate much higher than the market to encourage them to pay you off.  Make the note 15 or 20 years 30 is too long to wait. Have a prepayment penalty for not giving the seller time to plan for taxes. HIRE an attorney to write the note, hire a servicing company to do the yearly tax forms, check the hazard insurance and property taxes. IMPOUND everything to keep it simple. What state? there are laws...

Time for a local real estate attorney well versed in these matters. Stay in your own lane or you risk finding yourself in a place you do not want to be. 

Think Risk vs. Reward. 

My tip: refer them to a competent real estate attorney and a CPA.

I did this ONCE.  You need to be careful of Usury laws and the interest rate also can't be too far below the current rate (that's some other law).  We needed an accountant, a real estate lawyer and escrow to do special paperwork.

One thing to consider is it is also a lot harder to do extra principal payments with a seller carry, as they'd have to redo the amortization table with each extra principal payment.  If your buyer is someone who likes to do extra principal payments each month (or several times a month), this could be a problem.  If they like to do the bi-weekly payment plan, that could also be a problem.

Another thing to consider is what position your seller will be in.  Are they underwriting the entire purchase price (first position), or are they covering a gap between what the bank will lend and the purchase price (second position)?  There are risks involved with each of these.

As others have said here, you'll want to get a real estate attorney involved for anything specific to your state.

Personally, I'd setup a meeting with an attorney, my client the CPA/accountant and myself.  I'd then send out a document for digital signature that summarizes that call, the questions asked, answers received and advice given.  I'd make sure that document gets signed by my client and I'd keep that in my permanent file for the next 30 years.  C-Y-A

You need a good real estate attorney to advise you and handle this. At a minimum, the seller will need a mortgage and note. Some of my sellers do a five year mortgage/note with a balloon so buyer has to refinance at the five year mark. With interest rates starting to rise, it might be wise to include an option that if the buyer can't refi at a lower rate, they can have an extension on the loan until such time as they can. This helps the buyer purchase the property, gives them time to build some equity and get comfortable with the payment then refi into conventional. It gives the seller income during that time but they are not obligated to 20 or 30 year mortgage, especially if they are older and need income now. Discuss prepayment penalties with the RE attorney and if the mortgage/note are over five years, that should be included. Verify with the RE attorney if you can have a prepay on a mortgage/note under five years, I recall hearing something that you can't but that may only be on HELOCs and 2nd mortgages. Also ask the RE attorney about any tax implications on seller's part if they proceed with this.

Hire an attorney...

You don't know what you don't know.

Eve

Make sure they have an attorney to represent them. They will have all the documents needed

Consult with your broker and then follow the rules and laws of your selling area Austin. 

 Get educated by people like Caroline Gerardo  

  Then take it to a CPA and a real estate attorney.  You are (probably not) licensed to create notes and mortgages!

Austin,

Like many have said, hire a savvy real estate attorney to document.  A

Attorney.

Their attorney will provide the needed documentation.

What Caroline Gerardo said. Get a good attorney to totally protect your seller under any and all circumstances.

Seems like a lot of work in a hot market. Like everyone mentioned, get an attorney.

Time for an experienced transactional real estate attorney to lead the way.

Here's an article I wrote about this a while back . . . have done many seller carryback deals but not in FL! 
Make sure and click the link to Dodd-Frank Act changes . . . we here have several documents to address those requirements . . . 

Have a Professional do the Mortgage Docs 

print out a Amortization Sch for Both Parties 

Have the Seller provide a Annual letter confirming receipt of all pmts 

Time for an attorney on this one. I'm not sure why the seller would want to bother with this. 

We list and sell so much land with owner financing. The first mortgage, promissory note drafted by a local attorney. Many home buyers finishing up a sale out of state need a short bridge for under a year, just a couple months,  not a 30 year year mortgage Austin McKenzie. 

Giving your seller advice on providing financing to the buyer of your seller's property should not be attempted based on information gathered here in the Q & A unless that advice is to #1 consult with your broker.

Make sure the down pmt is large enough to cover the cost of foreclosure, repairs and resale if the buyer defaults.

It's risky business for both sides. Make sure you have a good real estate attorney drafting the document, maybe with oversight by a competent banker. Just think - if the buyer can't qualify for a mortgage, maybe he won't be able to pay your seller's loan either. From the buyer's perspective, if the seller already has a mortgage on the property and stops making payments, the buyer has no recourse and may be forced to vacate the property as the bank may seek to foreclose on their collateral.

This is out of my scope of expertise, get either a lender or an attorney to help you out.

my personal opinion is that if someone needs owner financing because they can't get a loan a seller doesn't need to take that risk.  And I generally tell them to talk to a couple of people who did it and regretted it when they foreclosed and repaired and put back on the market.

I would want a large deposit in escrow that would be immediately released within ten days and all contingencies removed at that time.

I can't see any logical reason to take that risk in today's market.  Interest rates are at historical lows, and if the buyer can't qualify for a traditional loan.. why would you want to take on that risk?  There are other ways to make money.

If they still want to go forward with carrying the buyer's paper, make sure to consult a good real estate attorney and have they draw up appropriate papers.