OWNER FINANCING CONTRACT
BETWEEN
_______________________________________________________________
(“THE OWNER”)
AND
____________________________________________________________
(“THE BUYER”)
__________________________________________________________________________________
THIS AGREEMENT is made on the ………….day of……….20……., by the Owner 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:
- SALE OF PROPERTY
On the______day of _____________, _________ the Owner 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:
- PURCHASE PRICE AND TERMS
- This contract establishes that the Owner shall sell and Buyer shall buy the Property and that Owner
shall finance the balance of the purchase price for the Property for Buyer after Buyer delivers a down payment. The purchase price of the property is ________________________________.
The down payment amount of __________________is due on _________________________.
- Buyer is/is not (circle one) obtaining financing for any portion of the purchase price of the
Property from a third party, such as a bank. Buyer must notify Owner of the amount of financing
obtained from any third party and provide the name and contact information of the third Party
within ______days of receiving such financing.
- The amount that Owner will finance for Buyer for the sale of the property is________________ (hereinafter “Owner finance”). Owner shall carry the promissory note for the entire mortgage term for the amount identified as Owner finance.Buyer has submitted a mortgage application to obtain this financing and Owner has approved Buyer’s finances. Financing for the mortgage is to last for a period of _________________ and carries an interest rate of ________________. This interest rate is/is not (circle one) flexible according to the mortgage rate index chosen by the parties. The parties have chosen ____________________as the mortgage rate index to govern this contract.
- Payment for the mortgage is due monthly in the amount of _________________________. This amount does/does not (circle one) include taxes, insurance, and legal, state, and other fees
associated with owning the Property. Should this amount include these fees and should these fees change due to changes in rates being set by the governing Party, such as the state tax authority, the parties will notify each other of any changes that are brought to their attention within _______days.
- TIME OF THE ESSENCE
Time is of the essence in the performance of each term and provision in this agreement by the Parties.
- DISCLOSURES
The Parties shall make all disclosures required by law.
- 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 Owner 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 Owner shall have any of the following remedies, in the discretion of Owner:
(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 Owner 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 Owner may take appropriate action against Buyer for collection of the same.
- 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.
- 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.
- 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.
- OWNER’S RIGHT TO REINSTATE AGREEMENT AFTER DEFAULT
In the event of the Buyer’s default and the termination of this agreement, the Owner, at his discretion, will have the right to reinstate this agreement. The Owner may require the Buyer to:
- Pay all sums owing under the agreement had it not been terminated;
- Cure any defaults; and
- Pay all expenses incurred by the Owner in enforcing their rights under this agreement.
All payments made under the preceding provision must be in a form acceptable by both parties.
- 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:
- Pays Owner all sums which then would be due under this agreement as if no acceleration had occurred;
- Cures any default of any other covenants or agreements; and
- 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 Owner’s interest in the Property and rights under this agreement.
Upon reinstatement by Buyer, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred.
- 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.
- DISPUTE RESOLUTION
Arbitration shall resolve any dispute under this agreement without limiting the Court’s jurisdiction.
- 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.
- In the event of termination of this contract, Buyer agrees to return the Property to Owner in substantially the same condition as it now exists, ordinary wear and tear excepted.
- 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.
- 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.
- 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.
- CONFIDENTIALITY
No Party shall disclose, directly or indirectly to any other person, any information concerning this agreement, whether such information is stated to be confidential or not, without the other Party’s written permission.
- 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.
- 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.
- 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.
OWNER: ___________________________________________
___________________________________________
BUYER: ___________________________________________
___________________________________________
- COSTS
Each Party shall bear its costs incurred in the negotiation, preparation, and execution of this agreement.
- 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.
- cOUNTERPARTS
This agreement may be executed in counterparts, each of which shall be an original, all of which shall constitute the same instrument.
- 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.
- 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.
- JOINT AND SEVERAL LIABILITY
The Buyer and Owner, if more than one, covenants and agrees that their obligations and liability shall be joint and several.
- 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 OWNER 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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