CONTRACT FOR DEED
BETWEEN
_______________________________________________________________ (“THE SELLER”)
AND
____________________________________________________________
(“THE BUYER”)
__________________________________________________________________________________
THIS AGREEMENT is made on the ………….day of……….20……., by the Seller and the Buyer (collectively referred to as “Parties” or individually as “Party”) and includes that Party’s successors, administrators, executors, and assigns.
In consideration of covenants and agreements contained in this agreement, and other good and valuable consideration, the receipt of which is hereby acknowledged, Parties agree to the following terms and conditions and to be bound thereby:
1. SALE OF PROPERTY
On the______day of _____________, _________for and in consideration of $_________________and other good and valuable considerations the receipt and sufficiency of which is hereby acknowledged, The Seller does hereby agree to convey, sell, assign, transfer and set over unto Purchaser with warranty covenants, the following property situated in __________ County, State of _______________, said property being described as follows: (Type description or attach description as exhibit “A”)
_______________________________________________________
_______________________________________________________
_______________________________________________________
Together with all rights of ownership associated with the property, including, but not limited to, all easements and rights benefiting the premises, whether or not such easements and rights are of record, and all tenements, hereditaments, improvements and appurtenances, including all lighting fixtures, plumbing fixtures, shades, venetian blinds, curtain rods, storm windows, storm doors, screens, awnings, if any, and ______________________________________________________ now on the premises.
SUBJECT TO all recorded easements, rights-of-way, conditions, encumbrances, and limitations and to all applicable building and use restrictions, zoning laws, and ordinances, if any, affecting the Property.
2. PURCHASE PRICE AND TERMS
The purchase price of the property shall be $ ________________. The purchaser does hereby agree to pay to the order of the Seller the sum of ___________________________ Dollars ($ __________) upon execution of this agreement, with the balance of $ _____________ being due and payable as follows:(Select one)
(a) Balance payable in _____________monthly installments of $ _____________each, with the first installment being due and payable on the ______ day of _____________, 20____ and a like payment on the_________ day of each month thereafter until the ____ day of ____________, 20___ , when the final payment shall be due. No interest.
(b) Balance payable, together with interest on the whole sum that shall be from time to time unpaid at the rate of ____ per cent, per annum, payable in the amount of $ ___________ per month beginning on
the ___ day of _________, 20___ and continuing on the ______________day of each month thereafter until fully paid.
(c) Balance payable, together with interest on the whole sum that shall be from time to time unpaid at the rate of ____ per cent, per annum, payable in the amount of $__________ per month beginning on the ___ day of ___________, 20___ , and continuing on the __________day of each month thereafter until the ___ day of _____________, 20 __, when all remaining principal and interest shall be paid. (Balloon payment)
If interest is charged, interest shall be computed monthly and deducted from the payment, and the balance of payment shall be applied on principal.
3. TIME OF THE ESSENCE
Time is of the essence in the performance of each term and provision in this agreement by the Parties.
4. SECURITY
This contract shall stand as security of the performance of all of the Purchaser’s obligations.
5. DISCLOSURES
The Parties shall make all disclosures required by law.
6. MAINTENANCE OF IMPROVEMENTS
All improvements on the Property, including, but not limited to, buildings, trees, or other improvements now on the premises, or hereafter made or placed thereon, shall be a part of the security for the performance of this contract and shall not be removed from that place. Buyer shall not commit, or suffer any other person to commit, any waste or damage to said premises or the appurtenances and shall keep the premises and all improvements in as good condition as they are now.
7. POSSESSION OF PROPERTY
Buyer shall take possession of the Property and all improvements thereon upon execution of this contract and shall continue in the peaceful enjoyment of the Property so long as all payments due under the terms of this contract are timely made. The Buyer agrees to keep the Property in a good state of repair. In the event of termination of this contract, Buyer agrees to return the Property to Seller in substantially the same condition as it now exists, ordinary wear and tear excepted. Seller reserves the right to inspect the Property after giving the Buyer _______days’ notice.
8. TAXES, INSURANCE, AND ASSESSMENTS
Taxes and Assessments: During the term of this contract:(Select one)
(a) Buyer shall pay all taxes and assessments levied against the Property.
(b) Seller shall pay all taxes and assessments levied against the Property. If Seller pays the taxes and insurance, Buyer shall reimburse Seller for same upon _________days notice to Buyer. Content Insurance: Buyer shall be solely responsible for obtaining insurance of the contents insuring contents owned by Buyer. Seller shall be solely responsible for obtaining insurance on all contents owned by Seller.
Liability and Hazard Insurance: Liability insurance shall be maintained by Buyer during the term of this contract naming Seller as an additional insured, in the amount of not less than $______________. Fire, hazard, and Windstorm insurance: Fire, hazard, and windstorm insurance shall be maintained as follows: (Select)
(a) Buyer shall obtain fire, hazard, and windstorm insurance in the amount not less than $ ___________, on a policy of insurance naming Seller as additional insured.
(b) Seller shall obtain and pay for hazard, fire and windstorm insurance in an amount not less than $ ____________. In the event Seller elects this option, Buyer shall repay the amount so paid by Seller within __________days of the demand for the same by Seller.
Should the Buyer fail to pay any tax or assessment, or installment thereof, when due, or keep said buildings insured, Seller may pay the same and have the buildings insured, and the amounts thus expended shall be a lien on said premises and may be added to the balance then unpaid, or collected by Seller, in the discretion of Seller with interest until paid at the rate of the ___ percent per annum.
In case of any damage as a result of which said insurance proceeds are available, the Buyer may, within _________ days of said loss or damage, give to the Seller written notice of Buyer’s election to repair or rebuild the damaged parts of the premises, in which event said insurance proceeds shall be used for such purpose. The balance of said proceeds, if any, which remain after completion of said repairing or rebuilding, or all of the said insurance proceeds if the Buyer elects not to repair or rebuild, shall be applied first toward the satisfaction of any existing defaults under the terms of this contract, and then as a prepayment upon the principal balance owing. No such prepayment shall defer the time for payment of any remaining payments required by said contract. Any surplus of said proceeds in excess of the balance owing hereon shall be paid to the Buyer.
9. DEFAULT
If the Buyer fails to perform any of the covenants or conditions contained in this contract on or before the date on which the performance is required, the Seller shall give the Buyer notice of default or performance, stating the Buyer is allowed________ days from the date of the notice to cure the default or performance (the “notice period”). In the event the default or failure of performance is not cured within the said time period, then Seller shall have any of the following remedies, in the discretion of Seller:
(a) Give the Buyer a written notice specifying the failure to cure the default and informing the Buyer that if the default continues for a period of an additional _________days after service of the notice period, that without further notice, this contract shall stand canceled and Seller may regain possession of the Property as provided herein; or
(b) Give the Buyer a written notice specifying the failure to cure the default and informing the Buyer that if the default continues for a period of an additional _______days after service of the notice period, that without further notice, the entire principal balance and unpaid interest shall be due after_________days and payable and Seller may take appropriate action against Buyer for collection of the same.
In the event of default and termination of the contract by Seller, Buyer shall forfeit any and all payments made under the terms of this contract including taxes and assessments as liquidated damages; Seller shall be entitled to recover such other damages as they may be due which are caused by the acts or negligence of Buyer.
The parties expressly agree that in the event of default not cured by the Buyer and termination of this agreement, and Buyer fails to vacate the premises, Seller shall have the right to obtain possession by appropriate court action.
10. DEED AND EVIDENCE OF TITLE
Upon total payment of the purchase price and any and all late charges, and other amounts due to the Seller, the Seller agrees to deliver to Buyer a Warranty Deed to the subject property, at Sellers expense, free and clear of any liens or encumbrances.
11. PREPAYMENT
Buyer to have the right to prepay, without penalty, the whole or any part of the balance remaining unpaid on this contract at any time before the due date.
12. ATTORNEY FEES
In the event of default, the defaulting Party shall pay to the other Party, the other Party’s reasonable and actual attorneys’ fees and expenses incurred by them in the enforcement of any rights. All attorney fees shall be payable prior to the defaulting Party being deemed to have corrected any such default.
13. LATE PAYMENT CHARGES
If Buyer fails to pay, within ________days after the due date, any installment owing hereunder, Buyer shall be required to pay an additional charge of ____________ percent of the late installment. Such amount shall be paid to Seller at the time of payment of the past due installment.
14. CONVEYANCE OR MORTGAGE BY SELLER
The Seller reserves the right to encumber the Property with a mortgage. If the Seller’s interest is now or hereafter encumbered by a mortgage, the Seller covenants that Seller will meet the payments of principal and interest thereon as they mature, and all obligations thereunder, and produce evidence thereof to the Buyer upon demand. In the event the Seller shall default upon any such obligations, the Buyer shall have the right to do the acts or make the payments necessary to cure such default and shall be reimbursed for so doing by receiving, automatically, credit to this contract to apply on the payments due or to become due thereon.
The Seller reserves the right to convey their interest in the above-described land, and such conveyance hereof shall not be a cause for rescission, but such conveyance shall be subject to the terms of this agreement.
The Seller may, during the lifetime of this contract, place a mortgage on the premises above described, which shall be a lien on the premises, superior to the rights of the Buyer herein, or may continue and renew any existing mortgage thereon, provided that the aggregate amount due on all outstanding mortgages shall not at any time be greater than the unpaid balance of the contract.
15. SELLER’S RIGHT TO REINSTATE AGREEMENT AFTER DEFAULT In the event of the Buyer’s default and the termination of this agreement, the Seller, at his discretion, will have the right to reinstate this agreement. The Seller may require the Buyer to: a) Pay all sums owing under the agreement had it not been terminated;
b) Cure any defaults; and
c) Pay all expenses incurred by the Seller in enforcing their rights under this agreement. All payments made under the preceding provision must be in a form acceptable by both parties.
16. BUYER’S RIGHT TO REINSTATE AFTER ACCELERATION
If Buyer defaults and the loan is accelerated, then Buyer shall have the right of reinstatement as allowed under the laws of the State of ______________, provided that Buyer:
a) Pays Lender all sums which then would be due under this agreement as if no acceleration had occurred;
b) Cures any default of any other covenants or agreements; and
c) Pays all expenses incurred in enforcing this agreement, including, but not limited to, reasonable attorneys’ fees and other fees incurred for the purpose of protecting Seller’s interest in the Property and rights under this agreement.
Seller may require that Buyer pay such reinstatement sums and expenses in one or more of the following forms, as selected by Seller: (a) cash, (b) money order, (c) certified check, bank check, treasurer’s check, or cashier’s check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity or (d) Electronic Funds Transfer. Upon reinstatement by Buyer, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred.
17. PROHIBITION ON TRANSFER
Neither Party shall assign, transfer, convey, encumber any of its rights or obligations hereunder without the prior written consent of the other Party. The consent shall not be unreasonably withheld.
18. DISPUTE RESOLUTION
Arbitration shall resolve any dispute under this agreement without limiting the Court’s jurisdiction.
19. TERMINATION
• Either Party may terminate this agreement at any time upon breach of the contract by the other Party.
• This agreement may be terminated at any time if both Parties consent to the termination in writing.
• Otherwise than for breach, or consent, either Party may terminate this agreement upon giving the other Party no less than _________days’ notices in writing. The other Party reserves the right to charge costs that have already been incurred if this provision is breached.
• The termination of this agreement shall not discharge the liabilities accumulated by either Party. • Any Clauses intended by the Parties or this agreement to survive the termination of this agreement shall survive the termination of this agreement by whatever cause.
20. ADDITIONS, ALTERATIONS, OR MODIFICATIONS
Where it shall appear to the Parties that this agreement, or any terms and conditions contained in this agreement, are in any way ineffective or deficient, or not expressed as originally intended, and any alteration or addition shall be deemed necessary, the Parties will enter into, execute, and perform all necessary further deeds and instruments. Any addition, alteration, or modification shall be in writing, and no oral agreement shall be effective.
21. FORCE MAJEURE
For this agreement, “Force Majeure” means an event which a diligent Party could not have reasonably avoided in the circumstances, which is beyond the control of a Party and includes, but is not limited to, war, riots, civil disorder, earthquake, storm, flood or adverse weather conditions, strikes, lockouts or other industrial action, terrorist acts, confiscation or any other action by government agencies.
A Party’s failure to fulfill its obligations due to Force Majeure shall not be considered as a breach of this agreement, provided that the Party has taken all reasonable precautions, due care, reasonable alternative measures, and minimal delay all to carry out the terms of this agreement.
22. CONFIDENTIALITY
The Buyer shall not disclose, directly or indirectly to any other person, any information concerning this agreement or the Seller, whether such information is stated to be confidential or not, without the Seller’s written permission.
23. NO WAIVER
Except where this agreement provides otherwise, the rights and remedies contained in it are not exclusive to rights or remedies provided by law. Failure by either Party to enforce any of the terms or conditions of this agreement shall not be a waiver of their right to enforce the terms and conditions of this agreement.
24. SEVERABILITY
Suppose any provision of this agreement is declared by any judicial or other competent body to be void, voidable, illegal, or otherwise unenforceable; parties may amend that provision or remove it from this agreement. The remaining provisions of this agreement shall remain in full force and effect.
25. NOTICES
Any notice required by this agreement or given in connection with it, shall be in writing and shall be given to the appropriate Party by personal delivery or by certified mail, postage prepaid, or recognized overnight delivery services at the following addresses (including email), and either Party may change the below addressees by reasonable notice in writing given to the other Party.
SELLER: ___________________________________________
___________________________________________
BUYER: ___________________________________________
___________________________________________
26. COSTS
Each Party shall bear its costs incurred in the negotiation, preparation, and execution of this agreement. 27. ENTIRE AGREEMENT
This agreement contains the entire understanding of the parties and there are no commitments, agreements, or understandings between the Parties other than those expressly set forth herein. This agreement shall not be altered, waived, modified, or amended except in writing signed by the Parties hereto. Parties will exercise utmost good faith in this agreement.
28. COUNTERPARTS
This agreement may be executed in counterparts, each of which shall be an original, all of which shall constitute the same instrument.
29. HEADINGS
The article and section headings in this agreement are for convenience; they form in no part of this agreement and shall not affect its interpretation.
30. PRONOUNS
All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the person or entity may require. As used in this agreement: words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender, and words in the singular shall mean and include the plural and vice versa.
31. JOINT AND SEVERAL LIABILITY
The Buyer and Seller, if more than one, covenants and agrees that their obligations and liability shall be joint and several.
32. GOVERNING LAW
This agreement shall be construed and enforced in accordance with the laws of the State of __________. IN WITNESS WHEREOF, the Parties have executed this agreement, as set below.
| Signed by the SELLER Signature: ………………………………………………….. Name: ……………………………………………………….. Date:……………………………………… | Signed by the BUYER Signature : …………………………………………………. Name: ……………………………………………………….. Date:…………………………………………….…… |
STATE OF __________________________
COUNTY OF _________________________
The instrument was acknowledged before me on ___________________ (date), by _________________________________________(name(s)).
______________________________
Notary Public
Printed Name: ______________________
My Commission Expires:
______________________
STATE OF __________________________
COUNTY OF ________________________
The instrument was acknowledged before me on ____________________(date), by __________________________________________(name(s)).
______________________________
Notary Public
Printed Name: _________________ My Commission Expires:
____________________
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