VIEWS: 6 PAGES: 7 CATEGORY: Real Estate POSTED ON: 2/7/2014
This Contract for Deed is when the seller finances the buyer’s purchase of certain property. Under this agreement, the seller collects a down payment and the buyer pays the rest of the purchase price using monthly installment payments. If the buyer defaults on the monthly installment payments, the seller will have the right to take possession of the property. This agreement is ideal for individuals or small businesses that want to purchase or sell property on an installment basis.
Contract For Deed This Contract for Deed is when the seller finances the buyer’s purchase of certain property. Under this agreement, the seller collects a down payment and the buyer pays the rest of the purchase price using monthly installment payments. If the buyer defaults on the monthly installment payments, the seller will have the right to take possession of the property. This agreement is ideal for individuals or small businesses that want to purchase or sell property on an installment basis. CONTRACT FOR DEED THIS CONTRACT FOR DEED (hereinafter referred to as the “Agreement”) is made and entered into as of __________________, [Instructions: Insert the date of this agreement] by and between ________________________ [Instructions: Insert the Buyer’s name] (hereinafter referred to as the “Buyer”), of _________________________________ [Instructions: Insert the Buyer’s address] and ________________________ [Instructions: Insert the Seller’s name] (hereinafter referred to as the “Seller”), of _________________________________. [Instructions: Insert the Seller’s address] WHEREAS, Seller is the owner of the following described real property (hereinafter referred to as the “Property”) situated in County of ______________________, [Instructions: Insert the county where the property is located] State of _____________________, [Instructions: Insert the state where the property is located] to wit: Property Address: _____________________________________________ [Instructions: Insert the address of the property] Legal Description: _____________________________________________ [Instructions: Insert the legal description of the property] WHEREAS, Buyer wishes to acquire the Property, together with all improvements on the Property, from Seller pursuant to this Agreement; and, subject to the terms and conditions hereof, Seller desires to transfer Seller’s entire right, title and interest in and to the Property, together with all improvements on the Property, to Buyer. NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer hereby agree as follows: 1. PURCHASE PRICE In consideration of Seller’s transfer of right, title and interest in and to the Property, together with all improvements on the Property, Buyer shall pay to Seller the sum of ___________ Dollars ($_____) [Instructions: Insert the purchase price] (hereinafter referred to as the “Purchase Price”), which shall be paid by Buyer as follows: a. A down payment in the amount of ___________ Dollars ($_____) [Instructions: Insert the down payment amount] (hereinafter referred to as the “Down Payment”), which shall be due and payable upon the execution of this Agreement; and b. The balance of the Purchase Price, ___________ Dollars ($_____), [Instructions: Insert the remaining balance of the property after deducting the down payment from the purchase price] together with compound interest, accruing from the date hereof until paid in full, at the rate of ___________ (__%) per annum [Instructions: Insert the interest rate] (hereinafter referred to as the “Balance”) shall be payable in monthly installments (hereinafter referred to as the “Monthly Installments”), of ___________ Dollars ($____) [Instruction: Insert © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 2 the monthly installment amount] per month payable on the __________________ [Instructions: Insert the day of the month the payment is due e.g. first, fifth, fifteenth, etc.] of each month (hereinafter referred to as the “Installment Due Date”), commencing on __________________ [Instructions: Insert the commencement date of the installment payments] and continuing until the entire Balance, including the principal and all interest accrued, is paid in full. All computations of interest will be made by Seller on the basis of a three hundred sixty five (365) days year, for the actual number of days elapsed in the relevant period. In no event shall interest to be paid hereon exceed the maximum rate permitted by applicable law and, if at any point, the interest rate prescribed hereunder exceeds such maximum rate, said rate shall be reduced to the limit thereof and any sums received by Seller in excess of such maximum rate shall be applied to the principal. Buyer reserves the right to prepay any portion of the Balance, in whole or in part, with no prepayment penalty. c. Notwithstanding anything to the contrary contained herein, the entire Balance, including the principal and all interest accrued, shall be due and payable in full on or before ________________________. [Instructions: Insert the due date of the entire balance] 2. POSSESSION OF THE PROPERTY Effective upon the later of execution of this Agreement and payment of the Down Payment, Buyer shall take and have possession to the Property. 3. CONVEYANCE OF THE PROPERTY Upon Buyer’s complete payment to Seller of the Purchase Price Seller agrees to execute and deliver to Buyer a Warranty Deed conveying good and marketable title to the Property free and clear of all liens and encumbrances created by Seller against the Property, subject only to restrictive covenants and easements of record, if any, existing as of the date of this Agreement against the Property, as well as the present existing building and zoning ordinances. 4. BUYER’S DUTIES PRIOR TO COMPLETE PAYMENT OF PURCHASE PRICE Upon Buyer’s taking of possession of the Property until Buyer’s complete payment of the Purchase Price, Buyer shall: a. Assume all hazards of damage to or destruction of any improvements now on the Property or placed on the Property. Until full payment of the Purchase Price and Seller’s delivery of the Warranty Deed as set forth herein, Buyer shall insure the Property in an amount no less than the Purchase Price, against loss or damage by fire, with extended coverage to include loss by windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles and smoke, with Buyer to pay the premiums for such insurance. b. Buyer agrees to pay all taxes assessed and to be assessed against the Property and any improvements now or later placed on the Property. © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 3 c. Maintain the Property, and all improvements located on the Property, at Buyer's sole cost, and keep them in good repair and condition. d. Indemnify and hold Seller and hold Seller harmless from any and loss arising out of any injury to any person or damage to any property on or about the Property. 5. REPRESENTATIONS AND WARRANTIES a. Seller represents and warrants that: (i) Seller is the legal owner of the Property; (ii) the Property is free from all liens, encumbrances liabilities, and adverse claims of any nature (individually and collectively, “Adverse Claims”); (iii) Seller shall indemnify and hold harmless Buyer from and against any damage or liability, including reasonable attorneys' fees and legal expenses actually incurred and paid by Buyer for or on account of any charge, claim, suit or proceeding that alleges or is based upon an Adverse Claim with regard to the Property; (iv) Seller has the full right and authority to sell, transfer, assign, deliver, set over and convey the Property to Buyer; (v) to the best of the Seller’s knowledge, all material information and facts provided herein, are true and correct. b. Except as otherwise represented and warranted in the prior subparagraph, the parties acknowledge and expressly agree that the Property is being sold on an “as is, where is” basis, without warranty of any kind, whether express or implied, regarding the condition of the Property. Buyer’s purchase of the Property shall be conclusive evidence that Buyer has inspected the Property and found the Property satisfactory in all respects. Any defects, whether patent or latent, and all repairs are the sole responsibility of the Buyer. Seller neither assumes, nor authorizes any other person or entity to assume on its behalf, any liability in connection with the sale of the Property. Seller's disclaimers of warranty do not affect the terms or applicability of any warranty from the Property’s manufacturer that may be applicable to the Property 6. DEFAULT a. The following events shall be deemed to be events of default by Buyer under this Agreement: (i) failure by Buyer to make any payment of the Purchase Price or payment of interest as provided in this Agreement at the time the payment falls due; (ii) failure of Buyer to perform promptly any covenant or agreement provided for in this Agreement; (iii) insolvency of Buyer, or transfer by Buyer in fraud of creditors, or assignment by Buyer for the benefit of Buyer's creditors; (iv) filing by Buyer of a petition under any section or chapter of the Bankruptcy Code, as amended, or under any similar law or statute of the United States or any state; or judgment of Buyer's bankruptcy or insolvency in proceedings filed against Buyer; and/or (v) appointment of a receiver or trustee for all or substantially all of the assets of Buyer. b. On the occurrence of any of the events of default specified in this paragraph, Seller shall have the right to, without any notice or demand to Buyer: i. Bring an action or actions on any intermediate overdue installment. The covenant to pay intermediate installments is independent of the covenant to make a deed, and every such action is an action arising on contract for the recovery of money only, as if the © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 4 promise to pay had been expressed in a different instrument. No such action shall constitute an election not to proceed otherwise as to any subsequent default, and no waiver by Seller of any default on the part of Buyer shall be construed as a waiver of any subsequent default; ii. Declare the entire unpaid debt, together with all accrued interest, immediately due and payable, and by appropriate action, in law or in equity, proceed to enforce collection the amount due; or iii. Terminate this Agreement and retain as liquidated damages any payments made by Buyer under this Agreement, to compensate Seller for breach of this Agreement and for rental and deterioration of the Property. Should Seller elect this remedy, Buyer shall immediately surrender the premises to Seller. Should Buyer fail to surrender the premises, Buyer shall from and after the termination of this Agreement be a tenant at will of Seller, and Seller shall be entitled to bring an action for forcible detainer of the Property. c. Any rights, powers, or remedies, granted or reserved to Seller by this paragraph shall not be construed to deprive Seller of any rights, powers, or remedies otherwise available in equity or at law. 7. MISCELLANEOUS a. This Agreement constitutes the entire agreement between the parties hereto with respect to the specific subject matter hereof and supersedes all prior agreements or understandings of any kind with respect to the specific subject matter hereof. b. In the event that any provision or part of this Agreement shall be deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect. c. Any modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void. d. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. Notwithstanding the foregoing, neither party may assign or transfer its rights or delegate its obligations under this Agreement without the other party's prior written consent, which consent will not be unreasonably withheld. e. No failure by either party to pursue any remedy resulting from a breach of any provision of this Agreement by the other party shall be construed as a waiver of that breach or as a waiver of any subsequent or other breach unless such waiver is in writing and signed by an authorized representative of the non-breaching party. f. This Agreement shall be governed in accordance with the laws of the State of _____________________ [Instructions: Insert the state’s laws that will govern this agreement] applicable to agreements to be wholly performed therein, without giving effect to its laws governing conflict of laws. © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 5 g. In the event of any dispute between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its attorney fees and costs. IN WITNESS WHEREOF, this Agreement has been signed and delivered by and on behalf of the parties hereto as of the date first set forth above. SELLER BUYER __________________________ __________________________ __________ [Instructions: Insert name] __________ [Instructions: Insert name] © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 6
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