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Contract for Sale of Property -Installment Payments

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					This Contract for the Sale of Property with Installment Payments is sale of a real
property (land) between a seller and buyer wherein the buyer pays a down-payment at
the time of execution of the agreement, and pays the balance of the purchase price in
equal installments over a period of time. This document in its draft form contains
numerous of the standard clauses commonly used in these types of agreements, as
well as optional language allowimg for customization to ensure the specific terms of the
parties' agreement are addressed. This document may be used by the seller or by the
purchaser of property.
                                CONTRACT FOR SALE OF PROPERTY


THIS CONTRACT FOR SALE OF PROPERTY (hereinafter referred to as “Contract”) is made
and entered into this _____ day of ___________, 20 ___, [Instruction: Insert date, month and
year of agreement.] by and between ______________________________________, [Instruction:
Insert      Seller’s      name.]       (hereinafter      referred      to      as "Seller"), and
____________________________________________, [Instruction: Insert Purchaser’s name.]
(hereinafter referred to as "Purchaser"), collectively referred to as “Parties.”

BACKGROUND:

Seller agrees to sell and convey Purchaser, and Purchaser agrees to buy from Seller the property
described below.

    1. PROPERTY

The property (“Property”) shall include the following:

(a) Property Address: ____________________________________________________________
[Instruction:    Insert   full   address]  or    more    specifically    described    as:
_______________________________ [Instruction: Insert more specific description, for
example, a metes and bounds description from a deed if available.] or as described in the
attached Exhibit B.

(b) Inclusions: __________________________________________. [Instructions: Include any
additional improvements such as improvements, and accessories. If none, write none.]

(c) Exclusions: The following improvements and accessories will be retained by Seller and
excluded: _____________________________________________________________________.
[Instruction: Include any items not being included which would typically be part of the
home, for example, any built ins, exterior landscaping out outbuildings, fixtures within the
home       including     mantelpieces,     light    fixtures,   switch       plates,    etc.]

    2. PURCHASE PRICE

The Total Price shall be ___________ ($__________) dollars. [Instruction: Insert price.]

    3. PAYMENT OF THE PURCHASE PRICE

(a) The Purchaser shall pay _________________ ($____________) dollars which is equal to
_____________ (      %) percent of Initial Purchase Price, to Seller as a down payment (“Down
Payment”) within ____ ( ) days from the date of the execution of this Contract. [Instruction:
Insert applicable amounts.] (The date of payment of the Down Payment shall be referred to as
the “Down Payment Date.”)




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(b) The remainder of the Purchase Price shall be paid in ___ ( ) [Instruction: Insert number of
payments to be made.] equal installments (each installment payment shall be referred to as
“Installment Payment”), as per the payment schedule in Exhibit A.

(c) An additional interest payment (“Interest”) shall be charged on the outstanding balance of the
Purchase Price, which shall accrue at the rate of ________ (         %) percent [Instruction and
Comment: Insert interest rate percentage. Sellers should be aware some states have
maximum permitted interest rates, and should conduct research to ensure they do not
charge more than that. Additionally, if no interest is charged, there may be a tax burden to
the Parties, and in such instance, Seller and Purchaser should seek the advice of a
sophisticated attorney and tax professional to determine what the possible tax
consequences of such a zero interest loan.] per annum, commencing as of the date of payment
of the Down Payment and ending upon the payment of the Purchase Price in its entirety.


    4. DEFAULT INTEREST

(a) In the event that the Purchaser fails to pay any Installment Payment by the due dates set forth
herein, the Purchaser shall pay to Seller a late payment interest of ________ (        %) percent
[Instruction and Comment: Insert interest rate for default payments. Sellers should be
aware some states have maximum permitted interest rates, and should conduct research to
ensure they do not charge more than that.] per annum, for the period from the date following
the due date until the date of actual payment.

(b) The Purchaser may pay to Seller any installment payment prior to the due date. In such case,
Seller shall reduce the installment payment by the amount calculated by applying the prepayment
discount rate, as applied by the bank designated by Seller as of the date of such prepayment.


    5. TRANSFER OF RIGHTS AND POSSESSION & CLOSING

(a) Seller shall, on the Down Payment Date, surrender and deliver to the Purchaser sole
possession of the Property, free from any encumbrances and any rights of tenants or any other
person to occupy such Property or any portion thereof and in such condition that the Purchaser
may immediately use the Property.

(b) Seller shall transfer title to the Property to the Purchaser upon the payment of the entire
Purchase Price or upon the Purchaser providing a payment guarantee, issued by a local bank
[Comment: Parties may wish to expand the permitted bank providing a payment guarantee
beyond a “local bank”] , in the amount equal to the remainder of the Purchase Price.

(c) The Closing Date is _______________ [Instruction: Insert date.] however, Seller shall have
a reasonable length of time within which to perfect title or cure defects in the title to the
Property.




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    6. CONDITION OF PROPERTY

Seller agrees to deliver the heating, cooling, plumbing and electrical systems and any built-in
appliances in operable condition at the time of closing. It shall be the responsibility of Purchaser,
at Purchaser’s expense, to satisfy himself/herself that all conditions of this Contract are satisfied
before closing. This sale is contingent upon a satisfactory inspection of the property by the
Purchaser to be completed and reported to Seller prior to or on _________________________,
20____. [Instruction: Insert date before which inspection must be completed. Parties may
also want to include whether or not sale is subject to pest inspection.] Said Contract shall
only be renegotiable upon a major defect with an individual repair cost in excess of _____.
[Instruction: Include dollar amount for permitted renegotiation.] After closing, all
conditions of the property, as well as any aforementioned items and systems, are the
responsibility of Purchaser and shall be deemed purchased AS-IS.



    7. SELLER’S WARRANTIES

Seller warrants that Seller has not received notification from any lawful authority regarding any
assessments, pending public improvements, repairs, replacements or alterations to said Property
that have not been satisfactorily made. These warranties shall survive the delivery of the above
deed.



    8. DEED AND EVIDENCE OF TITLE

Upon payment of the total purchase price and other amounts, including any late charge, by
Purchaser, Seller will, at Seller’s expense, deliver a Statutory or General Warranty Deed
[Comment: Parties should clarify with their State or Commonwealth the proper name of a
deed within that state. The prior sentence refers to a deed wherein the seller makes certain
representations. In instances of an installment contract, a Seller (or later, a Seller’s estate or
trust) may not be legally able to truthfully make those representations] to the Property to
Purchaser, free and clear of any liens or encumbrances other than taxes and assessments for the
current year.


    9. TITLE & HAZARD INSURANCE

    (a) Title shall be 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 which amounts to a qualification of the fee, and subject also to applicable
        zoning ordinances, subdivision laws and regulations, and landmark, historic or wetlands
        designation, provided that they are not violated by the existing buildings and
        improvements erected on the property or their use, consents for the construction of any
        structures on, under or above any streets which the Property abuts, encroachment of any


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         stoops, areas, cellar steps, trim and cornices, if any, upon any street or highway, real
         estate taxes that are a lien, but are not yet due and payable and other matters, including a
         survey exception, set forth in a Rider attached hereto. [Instruction: If no other matters to
         be set forth, remove last clause, except portion regarding survey exception.]

    (b) Seller agrees to furnish to Purchaser a standard form title insurance commitment, issued
        by a company qualified to insure titles in _________________________ [Instruction:
        Insert state.], in the amount of the purchase price, insuring the Purchaser against loss on
        account of any defect or encumbrance in the title, unless herein excepted; otherwise, the
        Down Payment shall be refunded.

    (c) The taxes, as determined on the date of Closing, are to be prorated between Seller and
        Purchaser as of the date of Closing. Seller shall keep in force sufficient hazard insurance
        on the property to protect all interests until the deed delivered. If the property is destroyed
        or materially damaged between the date hereof and the Closing and Seller is unable or
        unwilling to restore it to its previous condition prior to Closing, Purchaser shall have the
        option of cancelling the Contract and receiving back the Down Payment, or accepting
        the Property in its damaged condition, any insurance proceeds otherwise payable to Seller
        by reason of such damage shall be applied to the balance of the purchase price or
        otherwise be payable to Purchaser.


    10. TAXES AND ASSESSMENTS

The Purchaser agrees to pay all taxes, assessments, or impositions that may be legally levied or
imposed upon said Property apportioned as of the date of this Contract.


    11. RISK OF LOSS

In the event of a natural disaster, force majeure, or any other accident beyond the control of the
Parties damages the Property before title to the Property is duly transferred to the Purchaser
pursuant to this Contract, Seller shall assume the entire risk from such disaster, force majeure or
accident.


    12. EMINENT DOMAIN


If the whole of the Property or such portion thereof is condemned or taken by any legally
constituted authority for any public use or purpose, then both Seller and Purchaser may terminate
this Contract by giving written notice to the other.

If a portion of the Property is so taken, but not such amount as will make the Property unusable
in the reasonable judgment of Purchaser, this Contract shall continue in full force and effect, the
Purchase Price shall be reduced pro rata in proportion to the amount of the Property so taken, and
the Seller shall promptly commence such repair and restoration work and thereafter continue the


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same with reasonable diligence to restore all affected portions of the Property and Building to a
quality, taking into account the extent and nature of the condemnation, equal to that existing
immediately prior to such a taking.


    13. POSSESSION OF PROPERTY

Upon execution of this Contract Purchaser shall take possessions 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 complied with.


    14. TIME 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.


    15. NON-REFUNDABLE DOWN PAYMENT

The Down Payment as paid by Purchaser as set forth in Paragraph 3 hereof shall be deposited by
Seller only upon the execution of this Contract. The Down Payment shall be non-refundable to
Purchaser except for the occurrences of Paragraphs 6, 7, or 1918.


    16. DEFAULT

If Purchaser fails to comply with this Contract, Purchaser will be in default, and Seller may (a)
enforce specific performance, seek such other relief as may be provided by law, or both
[Comment: Many states will not grant Seller the right of specific provision in the sale of
real property. Prior to including this language, the Parties should seek clarity with an
attorney licensed to practice in the state in which this Contract is being executed.], or (b)
terminate this Contract and receive the Down Payment as liquidated damages, thereby releasing
both Parties from this Contract. If, due to factors beyond Seller's control, Seller fails within the
time allowed to make any non-casualty repairs, Purchaser may (a) extend the time for
performance up to ____ ( ) [Instruction: Insert number of permitted extension days.] days
and the Closing Date will be extended as necessary or (b) terminate this Contract as the sole
remedy and receive the Down Payment. If Seller fails to comply with this Contract for any other
reason, Seller will be in default and Purchaser may (a) enforce specific performance, seek such
other relief as may be provided by law, or both, or (b) terminate this Contract and receive the
Down Payment and any interest earned thereon, if any, thereby releasing both Parties from this
Contract.


    17. SURVIVAL OF CONTRACT




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All terms, conditions and warranties not performed at the time of delivery of the deed shall
survive such delivery unless specifically otherwise stated herein.


    18. COMMISSION FEES

Purchaser and Seller agree that this Contract was negotiated at arm’s length without assistance of
any real estate agents or brokers and that no such fees shall be paid by either party in connection
with this Contract or sale. [Comment: If a broker was involved, Parties should revise this
section accordingly.]


    19. CONVEYANCE BY SELLER


The Seller reserves the right to convey Seller’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.


    20. JOINT AND SEVERAL LIABILITY


If there is more than one Purchaser, then all Purchasers covenant and agree to joint and several
liability and obligations with respect to this Contract.


    21. NOTICES

Any notice to be given or to be served upon any party hereto, in connection with this Contract,
must be in writing. A notice may be delivered to a party at the address that follows a party's
signature or to a new address that a party designates in writing. A notice may be delivered: (1) in
person; (2) by certified mail; or (3) by overnight courier as follows: If to Seller:

Seller _____________________________                     Seller _____________________________
Address: ___________________________                     Address: ___________________________
City _______________________________                     City _______________________________
State and Zip _______________________                    State and Zip _______________________
[Instruction: Insert Seller information.]

And if to Purchaser:

Purchaser                                                Purchaser
_____________________________                            _____________________________
Address: ___________________________                     Address: ___________________________
City _______________________________                     City _______________________________
State and Zip _______________________                    State and Zip _______________________
[Instruction:      Insert    Purchaser


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information.]




    22. ASSIGNMENT OR SALE BY PURCHASER

Purchaser shall not sell, assign, transfer or convey any interest in the Property or this Contract,
without the prior written consent by Seller. In the event Seller gives Purchaser permission to
transfer or convey Purchaser’s interest, such conveyance shall not be a cause for rescission of this
Contract and shall be subject to the terms of this Contract. In the event Seller gives Purchaser
permission, and upon Purchaser assigning and a contract vendee assuming the rights and obligations
of this Contract, Purchaser shall have no further liabilities hereunder, unless specifically stated in the
contract between Purchaser and the contract vendee.


    23. PARTIES

If Seller or Purchaser constitutes two or more persons, the terms “Seller” or “Purchaser” shall be
construed to read “Sellers” or “Purchasers” whenever the sense of the Contract requires. Unless
identified as Seller or Purchaser, no real estate professional, escrow agent or closing agent is a
party to this Contract.

    24. PENDING LITIGATION

Seller warrants and represents that there are no legal actions, suits or other legal or administrative
proceedings, including cases, pending or threatened or similar proceedings affecting the Property
or any portion thereof, nor has Seller knowledge that any such action is presently contemplated
which might or does affect the conveyance contemplated hereunder.

    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 ________________________________.
[Instruction: Insert name of State.]


    26. MEDIATION AND POSSIBLE ARBITRATION

If a dispute arises, the Parties will try in good faith to settle it through mediation conducted by a
mediator to be mutually selected. 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 30 days after it is
referred to the mediator, it will be arbitrated by an arbitrator to be mutually selected. Judgment
on the arbitration award may be entered in any court that has jurisdiction over the matter. Costs


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of arbitration, including lawyers' fees, will be allocated by the arbitrator.

    27. ATTORNEY FEES AND COSTS

In connection with any litigation including appellate proceedings arising out of this Contract, the
prevailing party shall be entitled to recover reasonable attorney's fees and 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. SUCCESSORS AND ASSIGNS

This Contract shall be binding upon any heirs, successors and assigns of Seller or Purchaser.


    29. REVOCATION OF OFFER BY PURCHASER

This Contract has been first executed by Purchaser and if not accepted by all Parties by noon on
_________________________, 20____, [Instruction: Insert date of cancellation.] this offer
shall be void.


    30. SEVERABILITY

If any court determines that any provision of this Contract is invalid or unenforceable, any invalidity
or unenforceability will affect only that provision and will not make 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.


    31. 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 was given. If either
party fails to exercise or delays exercising any of its rights or remedies under this Contract, that
party retains the right to enforce that term or provision at a later time.


    32. BINDING EFFECT

This agreement and 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. However, nothing shall authorize a transfer in violation of any other provisions in the
agreement.




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    33.    COUNTERPARTS

This document or any subsequent amendment thereto may be executed by facsimile and/or in
one or more counterparts, each of which when so executed and delivered shall be deemed an
original, but all of which taken together shall constitute but one and the same original. Each
party shall accept any such signed faxed counterpart as full execution of this document or any
subsequent amendment thereto.


    34.    INTERPRETATION

Whenever the context hereof shall require, the singular shall include the plural, the male gender
shall include the female gender and the neuter, and vice versa.


    35. ENTIRE AGREEMENT

This Contract is 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 which the enforcement of such waiver, modification, amendment, discharge or
termination is sought, and then only to the extent set forth in such instrument.


   36. DISCLOSURES
_______________________________________________________________________
______________________________________________________________________________
________________________________________________________________________
______________________________________________________________________________
________________________________________________________________________.
[Comment: The Seller should note any disclosures about the property that may be required
under Federal or state law. Consult an attorney if uncertainty exists as to which disclosures
may be required.]


  37. ADDITIONAL PROVISIONS

Any additional provisions set forth on the reverse side, initialed by all Parties, are hereby made a
part of this Contract and this Contract states the entire agreement between the Parties and merges
in this agreement all statements, representations, and covenants heretofore made, and any
agreements not incorporated herein are void and of no force and effect.


THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT. CONSULT AN
ATTORNEY AND A TAX PROFESSIONAL BEFORE SIGNING IT, TO MAKE SURE
YOU UNDERSTAND ALL OF THE TERMS AND LEGAL AND TAX


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CONSEQUENCES.

IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year first
above written.


 Signature __________________________                      Signature __________________________
 Seller __ ___________________________                     Seller __ ___________________________
 Date ______________________________                       Date ______________________________
 Address: ___________________________                      Address: ___________________________
 City _______________________________                      City _______________________________
 State and Zip _______________________                     State and Zip _______________________



 Witness:
 Name:




EXHIBIT A



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PAYMENT SCHEDULE




EXHIBIT B




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DESCRIPTION OF PROPERTY




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DOCUMENT INFO
Description: This Contract for the Sale of Property with Installment Payments is sale of a real property (land) between a seller and buyer wherein the buyer pays a down-payment at the time of execution of the agreement, and pays the balance of the purchase price in equal installments over a period of time. This document in its draft form contains numerous of the standard clauses commonly used in these types of agreements, as well as optional language allowimg for customization to ensure the specific terms of the parties' agreement are addressed. This document may be used by the seller or by the purchaser of property.
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