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Land Installment Contract

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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.

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									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.


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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.




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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.




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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




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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.




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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.




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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 _______________________




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                               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:
____________________________
____________________________
____________________________




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  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.


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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




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