VIEWS: 1,341 PAGES: 13 CATEGORY: Buying a Home POSTED ON: 11/20/2009
This Land Installment Contract is an agreement between a buyer and seller whereby the seller finances the sale price of the property on an installment basis and retains the ownership and legal title until the obligation is paid in full. Upon execution of the contract, the buyer is entitled to take possession of the property as long as the installment payments are made in a timely manner. This type of land contract is often used in place of a purchase money deed of trust or mortgage. It contains numerous standard provisions and may be customized to fit the specific needs of the parties.
This Land Installment Contract is an agreement between a buyer and seller whereby the seller finances the sale price of the property on an installment basis and retains the ownership and legal title until the obligation is paid in full. Upon execution of the contract, the buyer is entitled to take possession of the property as long as the installment payments are made in a timely manner. This type of land contract is often used in place of a purchase money deed of trust or mortgage. It contains numerous standard provisions and may be customized to fit the specific needs of the parties. LAND INSTALLMENT CONTRACT This Land Installment Contract (this “Contract”) is hereby made and entered into this _____ day of ___________, 20 ___ (the “Effective Date”) by and between _______________________________ (“Vendor”) and ____________________________________ (“Vendee”), collectively referred to herein as the “Parties” and individually as a or the “Party.” WITNESSETH, Vendor, for itself, its heirs, and assigns, does hereby agree to sell to Vendee together with all appurtenances, rights-of-way, privileges, easements, and all buildings and fixtures in their present condition located upon the Property described below. 1. PROPERTY Vendor agrees to sell to Vendee, and Vendee agrees to purchase from Vendor, upon the following terms and conditions, the real estate, improvements, fixtures, appurtenances, commonly known as: ________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ _______________________________________________________. The legal description of which is as follows: ___________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ __________________________________________________________________ (the “Property”). The sale of the Property shall also include the following fixtures and personal property associated therewith (unless specifically excluded herein and below), all of which (if any) are owned by Vendor free and clear of all liens and encumbrances: ______________________________________________________________________________ ______________________________________________________________________________ __________________________________________________________ (the “Included Items”). The following items are specifically excluded from this Contract and shall not be transferred to Vendee as a part of the Property: ________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________ (the “Excluded Items”). 2. PRICE AND PAYMENT 2.1 The Purchase Price for the Property shall be _______________ dollars ($______) payable as follows:________________________________ ($_________________) on execution of this Contract, receipt of which is hereby acknowledged. 2.2 The balance of _____________ dollars ($_________) shall be paid in installments of __________________ dollars ($____) per month (which includes the principal and interest) payable to Vendor on or before the ____ day of each month commencing on ________________ ______, 20____ and continuing until such time as the full amount of said purchase price has been paid. Interest rate at ____________ (%__) per annum shall be paid on the remaining unpaid principal balance. Each such installment, when received by Vendor, shall be credited first to the payment of the interest on the remaining unpaid balance due on the date of receipt of such installment and then to the reduction of the unpaid principal balance. If payment is not received by the ____ day of each month, there will be an additional ____ dollar ($___) late fee charge added to that month’s payment. (If there are alternative methods of payment, please describe in clause 2.2) 2.3 Vendee may prepay all or part of the balance amount of the principal and interest at any time, without any penalty, and without notice. Such prepayment shall not include unearned interest. 3. CONDITION OF PROPERTY Vendee states it has made an inspection of the Property and is purchasing same in “AS IS CONDITION” without any type of warranty thereon. Vendee further understands that Vendor has not made and does not make any representations or warranties of any kind as to the condition of the Property, buildings, improvements, or fixtures located thereon, and/or the location of the boundaries of the Property. 4. POSSESSION Vendee shall be entitled to enter into possession of Property on the ______ day of ________________, 20___ and to continue in possession thereof so long as it is not in default in its the performance of this Contract. 5. DELIVERY OF DEED Upon full payment of this Contract, Vendor shall issue a General Warranty Deed conveying to Vendee good and marketable title to the Property as evidenced by a title guarantee in the full amount of the purchase price procured and paid for by Vendor. 6. EVIDENCE OF TITLE Vendor shall be required to provide an abstract or guarantee of title, statement of title, title insurance, or any such other evidence of title at Vendor’s expense upon request from Vendee. Such evidence of title shall show marketable title of the Property conveyed free and clear of all encumbrances except those mortgages or liens, if any, mentioned herein, easements, restrictions, limitations, reservations, covenants and conditions of record not coupled with a possibility of reverter, right of reentry, or other reverter right that amounts to a qualification of the fee, and subject also to applicable zoning ordinances and real estate taxes for the year in which the deed is delivered and thereafter. © 2011 by Docstoc®, Inc. 7. TAXES AND ASSESSMENTS Vendee shall pay all general and special taxes, liens, and charges including any and all assessments of every nature, levied, assessed, or accruing on the Property after the Effective Date. Real estate taxes shall be prorated to the date of closing using the short-term method of tax proration becoming due and payable on _______________, 20___. When the real estate taxes become due and payable, Vendee shall pay same directly to the ___________________ County Treasurer and provide proof of payment to Vendor within ___ (__) days of same. 8. RISK OF LOSS AND INSURANCE Vendee shall be liable for risk of loss by negligence, fire, or other casualty. Vendee agrees to keep the Property insured, with at least content, liability, fire, casualty, hazard, and windstorm insurance with an insurance company satisfactory to Vendor for a sum not less than ____________ dollars ($_____) and a comprehensive liability insurance coverage of not less than ____________ dollars ($_____) for the benefit of both Parties, as their interest may appear, and provide a copy of said policy to Vendor or to any mortgagee. All insurance proceeds shall be payable to Vendor. 9. UTILITIES Vendee shall pay the cost of all utilities in connection with the Property, including, but not limited to, telephone, gas, electric, water, sewage, and cable, that may become due or payable on or after the Effective Date. Vendee shall at no time have any utility service disconnected without written authorization from Vendor. 10. POSSESSION OF PROPERTY Upon execution of this Contract, Vendee shall take possession of the Property and shall enjoy peaceful possession of the Property for as long as all payments due under this Contract are made in a timely manner and all other terms and covenants are in compliance. 11. TIME IS OF THE ESSENCE Time is of the essence with respect to the terms and provisions of this Contract. The time of each payment shall also be an essential part of this Contract. 12. DEFAULT BY VENDOR In the event of the failure of Vendor to comply with the terms of this Contract or perform any of the covenants hereby made and entered into, Vendee shall have the option to collect damages at law or demand specific performance, costs, and reasonable attorney’s fees from Vendor. © 2011 by Docstoc®, Inc. 13. DEFAULT BY VENDEE In the event of the failure of Vendee to pay any of the sums in this Contract agreed to be paid by Vendee, for a period of ____ (__) days after they become due, either as installments or on account of interest, taxes, assessments, or procuring insurance, or should Vendee fail to comply with any of the covenants or conditions of this Contract on its part to be performed, or if a receiver is appointed for Vendee (Vendee is prohibited from assigning its interest in the Property for benefit of creditors due to bankruptcy or otherwise), or should any action or proceeding be filed in any court to enforce any lien on or claim against the Property seeking to reach the interest of Vendee, then: a. Vendor shall be released from all obligations in law or equity to convey the Property to Vendee. b. Vendee agrees to forfeit all rights to the Property, improvements made to property, fixtures added to the Property, including, but not limited to, lighting, carpet, ceiling fans, etc., any monies paid via either down payment or monthly payments, and any rights to possession commencing on the _____ day of default. c. Vendor shall have a right to retake possession of the Property after the ____ day of default. d. In lieu of the foregoing, Vendor, at its option, may declare by notice to Vendee, the entire unpaid balance of the purchase price specified in this Contract to be due and payable, and may take appropriate action, in law or in equity, to proceed to enforce payment thereof. e. Any rights, powers, or remedies, special, optional, or otherwise, given or reserved to Vendor by this Paragraph shall not be construed to deprive Vendor of any rights, powers, or remedies otherwise provided by law or equity. f. Any and all legal fees incurred as a result of default of this Contract by Vendee shall become due and payable from Vendee. 14. MAINTENANCE OF PROPERTY Vendee agrees to maintain the Property at all times in a state of good repair and condition, and will not do or permit to be done anything to the Property that will in any way impair or weaken the security of Vendor’s title. At such time as Vendor inspects the Property and finds that repairs are necessary, Vendor shall request that these repairs be made within ___ (__) days at Vendee’s expense. In case of the refusal, neglect, or inability of Vendee to repair and maintain the Property, Vendor may, at Vendor’s option, make such repairs or cause same to be made, and advance money in that regard, which money advanced or costs of repairs shall be the obligation of Vendee and shall be secured by this Contract. © 2011 by Docstoc®, Inc. 15. RETURN OF PROPERTY In the event this Contract is terminated and Vendee is required to return the Property to Vendor as may be required by the terms of this Contract, Vendee agrees to return the Property to Vendor in substantially the same condition as it now exists, ordinary wear and tear excepted. Vendor reserves the right to inspect the Property at any time by giving Vendee reasonable notice. 16. RECORDING As soon as practicable after the Effective Date, Vendor shall cause a copy of this Contract to be recorded in the appropriate office of the county in which the Property is located. Vendor shall provide Vendee with evidence of such recording. 17. ENCUMBRANCES The Property is presently subject to a mortgage. Vendor shall not place any additional mortgage on the Property without first obtaining the written permission of Vendee. In the event Vendor should become delinquent in payments on the mortgage, Vendee may pay the same and credit said payment to the Contract price. OR The Property is subject to the following encumbrances: __________________________ _______________________________________________________________________________ _______________________________________________________________________________. No mortgage may be placed upon the Property to become a lien on the Property, if the total amount of such mortgage becomes, at any time, greater than the unpaid balance under this Contract. If Vendor defaults on any such mortgage or land contract, Vendee shall have the right to make any necessary payments or take any necessary actions to cure the default and Vendee will be reimbursed be receiving credit to this Contract to apply to any payments that are due or will become due. 18. ALTERATIONS TO PROPERTY Vendee shall not construct any additional buildings or make any structural change to the Property without first obtaining written approval from Vendor. If written approval is given to construct or improve the Property, Vendee shall indemnify and hold Vendor, the Property of Vendor, and Vendor’s interest in the Property harmless, free and clear from liability for any and all mechanic’s liens or other expenses or damages resulting from any renovations, alterations, buildings, repairs, or other work placed on the Property by Vendee. 19. PERSONAL INJURIES Vendee shall indemnify and hold Vendor harmless from any and all demands, loss, or liability resulting from the injury or death because of the negligence of Vendee or the condition © 2011 by Docstoc®, Inc. of the Property at any time or times after the date possession of the Property is delivered to Vendee. 20. CONVEYANCE BY VENDOR Vendor reserves the right to convey Vendor’s interest in the Property. Such conveyance shall not be a cause for rescission of this Contract and shall be subject to the terms of this Contract. 21. JOINT AND SEVERAL LIABILITY If there is more than one Vendee, then all Vendees covenant and agree to joint and several liability and obligations with respect to this Contract. 22. NOTICES Any notice to be given or to be served upon any Party hereto in connection with this Contract must be made in writing. Such notice may be delivered to a Party at the address that follows a Party’s signature or to any new address that Party designates in writing. Notice may be delivered: (1) in person; (2) by certified mail; or (3) by overnight courier as follows: If to Vendor: Vendor _____________________________ Address: ___________________________ City _______________________________ State and Zip _______________________ If to Vendee: Vendee _____________________________ Address: ___________________________ City _______________________________ State and Zip _______________________ 23. ASSIGNMENT OR SALE BY VENDEE Vendee shall not sell, assign, transfer, or convey any interest in the Property or this Contract, without the prior written consent by Vendor. In the event Vendor gives Vendee permission to transfer or convey Vendee’s interest, such conveyance shall not be cause for rescission of this Contract and shall be subject to the terms of this Contract. 24. PENDING ORDERS There are no known pending orders issued by any governmental authority with respect to the Property, other than those set forth in this Contract, existing prior to the Execution Date set forth herein and above. © 2011 by Docstoc®, Inc. 25. GOVERNING LAW This Contract and all transactions contemplated hereby, shall be governed by, construed, and enforced in accordance with the laws of the State of ________________________________. 26. DISPUTES If a dispute arises, the Parties will try in good faith to settle it through mediation conducted by and in accordance with the mediation rules and procedures of American Arbitration Association (AAA). The Parties will share the costs of the mediator equally. Each Party will cooperate fully and fairly with the mediator and will attempt to reach a mutually satisfactory compromise to the dispute. If the dispute is not resolved within ___ (__) days after it is referred to the mediator, it shall be arbitrated by arbitration rules and procedures of the AAA. Judgment on the arbitration award may be entered in any court that has jurisdiction over the matter. Costs of arbitration, including attorney fees, shall be allocated by the arbitrator. 27. ATTORNEY FEES AND COSTS In connection with any proceeding arising out of this Contract, the prevailing Party shall be entitled to recover reasonable attorney fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing Party may be entitled. 28. SEVERABILITY If any court determines that any provision of this Contract is invalid or unenforceable, any invalidity or unenforceability will affect only that provision, shall not render any other provision of this Contract invalid or unenforceable, and such provision shall be modified, amended, or limited only to the extent necessary to render it valid and enforceable. 29. WAIVER If one Party waives any term or provision of this Contract at any time, that waiver will only be effective for the specific instance and specific purpose for which the waiver is given. If either Party fails to exercise or delays exercising any of its rights or remedies under the terms or provisions this Contract, that Party retains the right to enforce that term or provision at a later time. 30. BINDING EFFECT This Contract and the covenants herein shall be binding upon and shall inure to the benefit of the Parties hereto and their successors, heirs, executors, administrators, personal representatives, and assigns. © 2011 by Docstoc®, Inc. 31. COUNTERPARTS This Contract may be executed in several counterparts, each constituting a duplicate original, and together which shall constitute one and the same Contract. 32. ENTIRE AGREEMENT This Contract constitutes the entire agreement between the Parties with respect to the transaction contemplated herein. It replaces and supersedes any and all oral agreements between the Parties, as well as any prior writings. Neither this Contract nor any provision hereof may be waived, modified, amended, discharged, or terminated except by an instrument in writing signed by the Party against whom the enforcement of such waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in such instrument. 33. EXHIBITS (Add Name(s) of Exhibits attached to this Contract) ______________________________________________________________________________ ________________________________________________________________________. IN WITNESS WHEREOF, the Parties hereto hereby execute this Contract as of the date first above written. Signature __________________________ Vendor ___________________________ Date ______________________________ Address: ___________________________ City _______________________________ State and Zip _______________________ Signature __________________________ Vendee____________________________ Date ______________________________ Address: ___________________________ City _______________________________ State and Zip _______________________ © 2011 by Docstoc®, Inc. NOTARY STATEMENT STATE OF ) ) SS: COUNTY OF ) Before me, a Notary Public, in and for said County and State, personally appeared the above mentioned, who acknowledge that they did sign the foregoing instrument and same is his/her/its free act and deed. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal at __________________ [city], ___ [State], this _______ day of __________________, 20__. _________________________ NOTARY PUBLIC This instrument was prepared by: ____________________________ ____________________________ ____________________________ © 2011 by Docstoc®, Inc. DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS Lead Warning Statement Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust may pose health hazards if not taken care of properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, Landlords/Sellers/Vendors must disclose the presence of known lead-based paint and lead-based paint hazards in the dwelling. Tenants/Buyers/Vendees must also receive a federally-approved pamphlet on lead-poisoning prevention. Vendor’s Disclosure (a) Presence of lead-based paint and/or lead-based paint hazards (Check (i) or (ii) below): (i) _____ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain): ______________________________________________. (ii) ____ Vendor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to Vendor (Check (i) or (ii) below): (i) _____ Vendor has provided Vendee with the following available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents): ______________________________________________. (ii) ____ Vendor has no reports or records pertaining to lead-based paint and/or lead- based paint hazards in the housing. Vendee’s Acknowledgment (initial) (c) _____ Vendee has received copies of all information listed above. (d) _____ Vendee has received the pamphlet Protect Your Family From Lead In Your Home. (e) Vendee has (check (i) or (ii) below): (i) _____ received a ____ (__)-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) _____ waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. © 2011 by Docstoc®, Inc. Agent’s Acknowledgment (initial) (e) ________ Agent has informed Vendor of Vendor’s obligations under 42 U.S.C. 4852d and is aware of his/her/its responsibility to ensure compliance. Certification of Accuracy The following Parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. _______________________ ________________ _________________ _________________ Vendor Date Vendor Date _______________________ ________________ _________________ _________________ Vendee Date Vendee Date _______________________ ________________ _________________ _________________ Agent Date Agent Date © 2011 by Docstoc®, Inc.
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