Buy With Land Contract - Contract for Deed

Buy Using a Land Contract - Contract For Deed

Land Contracts. This Agreement is Pro Buyer.

PLEASE DO NOT USE THIS AGREEMENT UNLESS REVIEWED BY YOUR LOCAL STATE ATTORNEY.

The Following Agreement was created by Bill Bronchick and is used with permission here.

Bill has some great courses and investor resources available on his excellent web site at www.legalwiz.com

We recommend you check it out.

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INSTALLMENT LAND CONTRACT

THIS INSTALLMENT LAND CONTRACT made and entered into this _____________ day of ___________________, 20_______ by and between

________________________________________, hereinafter called "Seller," and ________________________________________, hereinafter called "Purchaser."

1. PROPERTY. In accordance with the terms and conditions hereinafter set forth, Seller agrees to sell and Purchaser agrees to buy the following described real estate in the County of _____________________, State of ____________________, to wit:

(legal description)

also known by street and address as ___________________________________, together with all rights of way and easements appurtenant thereto, all improvements thereon and all fixtures of a permanent nature, if any, in their present condition, ordinary wear and tear excepted, known as (hereinafter called "the Property").

2. ESCROW. Concurrently with the execution of this contract, Purchaser and Seller have executed an escrow agreement incorporating the terms hereof with ________________________________________________, as escrow agent, and Seller has executed and delivered to said escrow agent a ____________________ deed and bill of sale to Purchaser, and Purchaser has executed a quitclaim deed to seller, to be delivered according to the terms of the escrow agreement, a copy of which is annexed hereto and incorporated by reference.

3. PURCHASE PRICE. Purchaser agrees to pay Seller or assigns as the full purchase price for the Property the sum of $_____________________ payable as follows:

$_______________________ upon execution of this Installment Land Contract, and $_____________________ together with interest on the unpaid principal balance at the rate of _________________% per annum, amortized over _________years, in installments of not less than $_________________ per month, including principal and interest, beginning on _________________ and on the 1st day of each and every month thereafter until principal and interest have been paid in full; provided however, that the entire balance of principal and interest shall be due and payable on _____________________ or upon sale or refinance of the Property, by buyer whichever first occurs.

4. PROPERTY TAXES. In addition to the payments for principal and interest, Purchaser also agrees to pay annual property taxes when the same becomes due. Seller agrees to forward all statements and bills received to the purchaser immediately upon his receipt. In the event that seller has an underlying loan which provides for escrow of taxes, the said property taxes will be satisfied from said escrow, and purchaser shall pay to seller in amount which mirrors the payments collected from seller by said lender escrow.

5. POSSESSION. Possession of the Property shall be delivered to Purchaser on _________________, 20_______ subject to the following leases or tenancies:

If Seller fails to deliver possession on the date herein specified, Seller shall be subject to eviction and shall be liable for a daily rental of $50.00/day until possession is delivered. Subject to applicable law, Seller specifically assumes the risk of loss by fire or other forces, natural or manmade, until possession is delivered.

6. INSURANCE. From and after date hereof, Purchaser shall keep all buildings on the Property insured against loss by fire with extended coverage endorsement in an amount which will yield not less than the amount due seller on this contract with loss payable clause being the interest of Purchaser and Seller may appear. In the event that seller has an underlying loan which provides for escrow of hazard insurance, the said insurance premiums will be satisfied from said escrow, and purchaser shall pay to seller in amount which mirrors the payments collected from seller by said lender. Any proceeds received by seller in the event of a claim shall be held in trust for the benefit of, and delivered immediately to, the purchaser. In the event of a total loss, any proceeds exceeding the amount due seller under the contract shall be the property of the purchaser. The purchaser may, at his option, use the proceeds to repair or rebuild the property.

7. EXISTING ENCUMBRANCES. Seller represents that all payments due on existing encumbrances have been paid. It is understood that Purchaser does not assume the existing encumbrances on the Property, and that Seller shall make all payments thereon as they become due and owing and shall fully discharge said encumbrances prior to or simultaneously with delivery of deed to Purchaser by escrow agent. In case of failure of Seller to make such payments as they become due, Purchaser shall have the right to make such payments and to deduct the amount thereof from the installments due and owing Seller hereunder from the next principal and interest payments due and owing under this contract. Purchaser shall be entitled to interest at the rate of 1.5% per month on all disbursements made on seller's behalf.

At no time shall the amount owing on any present or future encumbrance exceed the unpaid principal balance owing under this contract. In addition to any other remedy available to Purchaser, if at any time the amount owing on any present or future encumbrance exceeds the unpaid principal balance owing under this contract, Purchaser may pay to the creditor of such encumbrance that part of the payment due under this contract that applies to principal and such payments to the creditor will be credited to the balance due under this contract. Purchaser shall be entitled to interest at the rate of 1.5% per month on all disbursements made on seller's behalf.

8. DEFAULT. In the event of default by Purchaser under the terms of this contract, Seller may give written notice of such default to Purchaser. and if said default is not corrected within 30 days of such notice, Seller shall give a written affidavit to the escrow agent stating (1) that such default has occurred, (2) that notice has been given, and (3) that such default has not been corrected. Upon receipt of such affidavit by the escrow agent, the escrow agent shall give written notice thereof to Purchaser by personal service or by first class mail that if such default has not been corrected and any delinquent payments made current within 15 days of the notice, the interests of Purchaser may be forfeited. The seller's sole legal remedy in case of default shall be against the property and not against the purchaser personally. Purchaser shall have the same rights of redemption and reinstatement as provided under applicable state law for mortgages or deeds of trust.

In the event of default by Seller, Purchaser may commence suit to recover actual damages and/or for specific performance of this agreement. In the event that any lien on the property is foreclosed, Seller agrees to assign all rights to redeem as owner, maker and/or guarantor of debt to Purchaser and (or cause escrow agent) to deliver title to the property.

9. RECORDING. Purchaser and Seller agree that this contract may be recorded in the county real property records. In lieu of recording this agreement, the purchaser may request that seller execute a deed of trust/mortgage naming Purchaser as beneficiary to secure performance of his obligations under this agreement, which security instrument shall be recorded with the county real property records wherein the property is located. In this case, Seller shall amend his hazard insurance policy, naming Purchaser as a lienholder.

10. PREPAYMENT. The purchaser may pre-pay the amount due under this contract at any time without penalty.

11. IMPROVEMENTS & REPAIRS. The purchaser shall be responsible for all repairs and maintenance of the property. The purchaser may, at his option, remodel or improve the property and the improvements thereon within the guidelines of local law and building codes. Seller agrees to execute any document necessary for governmental approval permits for such work or improvements.

12. TITLE. Upon satisfaction of the indebtedness due under this agreement, the seller agrees to deliver marketable title and pay for an ALTA extended policy of title insurance from a reputable insurance provider. Within 60 days of purchaser delivering his intent to satisfy the indebtedness due under this agreement, Seller shall provide and abstract and proof of marketable title to purchaser.

13. MISCELLANEOUS. The use of any gender herein shall be deemed to be or include the other genders and the neuter and the use of the singular herein shall be deemed to be and include the plural (and vice

versa), wherever appropriate.

ADDITIONAL PROVISIONS:

IN WITNESS WHEREOF, I/we the undersigned have executed this Installment Land Contract on the day and date first above written.

_______________________________

_________________________________

Seller

State of ___________________)

County of _________________) ss:

On ___________, 20_____, before me, __________________, a notary public in and for said state personally appeared _________________ _________________

personally known to me (or proved to me based upon satisfactory evidence) to be the person(s) whose name(s) are subscribed to the within instrument and acknowledged that (s)he/they executed the same in his/her/their signature on the instrument the person(s) or entity on behalf of which they acted, executed the instrument.

_________________________

Signature of Notary

My commission expires

[NOTARY SEAL]

______________________________