STANDARD AGREEMENT FOR REAL ESTATE DEED
THIS AGREEMENT FOR REAL ESTATE DEED (this Agreement) is made and entered into this ______ day of ____________, 20___, by and between ______________________________________________________________________, (the Grantor), and ______________________________________________________________________ (the Grantee). WITNESSETH, that if the Grantee first makes the payments and performs the covenants contained in this Agreement on his part to be made and performed, the Grantee shall purchase and the Grantor, his heirs, executors, administrators, personal representatives, or assigns, hereby covenants and agrees to convey to the Grantee, his heirs, executors, administrators, personal representatives, or assigns, in fee simple absolute, clear of all encumbrances, except easements and covenants of record, if any, by General Warranty Deed, the property more fully described as follows: ________________________________________________________ ________________________________________________________ (the Property) In consideration of the mutual promises and covenants contained herein, the undersigned parties agree as follows: 1. Conveyance 1.1 The Grantor shall execute and deliver to the Grantee a General Warranty Deed upon full payment of the Purchase Price by Grantee as set out in this Agreement. 1.2 The General Warranty Deed shall be recorded at the expense of the Grantee. 1.3 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 and real estate taxes for the year in which the Warranty Deed is delivered, and thereafter. 2. Purchase Price 2.1 The Grantee shall pay to the Grantor the sum of __________________________________________ Dollars ($______) and _____________________________________________ Dollars ( $__________.____) as a down payment paid to the Grantor upon execution of this Agreement, the receipt of which is hereby acknowledged. The principal sum of __________________________________________________________________ Dollars ($__________.___) with interest at the rate of ____________% percent per annum, in monthly installments of $_____________, beginning on the ______ day of _____________________, 20____, and continuing on the _______ day of each and every month thereafter, for period of ______ months, or until termination of this Agreement. 3. Insurance and Taxes 3.1 The Grantee shall create and maintain an escrow account that will pay all taxes, assessments, or impositions that may be legally levied or imposed upon the Property during the term of this Agreement. 3.2 The Grantee shall purchase an insurance policy as of this date and pay yearly, in advance, to maintain said insurance policy in full force and effect during the term of this Agreement.
3.3 The Grantee shall deposit the sum of $______ monthly and this sum shall be held in escrow by the mortgage company until premiums and taxes are due. Any changes to this agreed sum of $_________ shall be notified by the Grantee by the Grantor and the Grantee shall make payment accordingly. Failure by the Grantee to make the monthly payments shall be treated as default on the part of the Grantee. If no escrow account exists, then Grantee shall be obliged to pay, directly to the taxing authority or insurance carrier, the annual property taxes and insurance premium as and when due. The Grantor shall forward any notices for payment immediately to the Grantee. 3.4 The Grantee shall be entitled to income tax deductions for Interest, Property Taxes and improvements as allowed by the IRS. 4. Damage to Property 4.1 Risk of loss by fire or other casualty is that of the Grantee. 4.2 The Grantee shall keep the building upon the premises insured with an insurance company satisfactory to the Grantor for a sum not less than its full insurable value. 4.3 The Grantee shall be shown as the loss payee on the insurance policy and all insurance proceeds shall be payable to the Grantee. 4.4 In the event of a loss by fire or other casualty, the rights and obligations of the parties shall be as follows: a. If the damage to the building is less than fifty (50%) percent of the total value of the improvements, the Grantee shall be obligated to repair or reconstruct, as the case may be, and the Grantee shall apply the insurance proceeds directly to the costs of such repair or reconstruction, with the Grantee being entitled to any surplus insurance funds over and above the costs of repair or reconstruction, and the Grantee being further liable for any deficiency after application of the insurance proceeds to such costs. b. If the damage to the building is in excess of fifty (50%) percent of the total value of the improvements, the Grantee shall have the option as to whether to repair or reconstruct following such casualty loss. (i) If the Grantee elects not to repair or reconstruct, then the unpaid balance of the purchase price, together with accrued interest to date, but excluding unearned interest, shall at the option of the Grantor become due and payable forthwith, and the insurance proceeds shall be applied towards the application of such sum, any surplus of the insurance proceeds over and above the Grantee's obligations shall be retained by the Grantee. In the event that the contract is paid out as a result of the application of the insurance proceeds, the Grantor shall deliver a deed to the Grantee and consummate the transaction. In the event the contract is not paid out as a result of the application of the insurance process pursuant to an election not to repair or reconstruct after casualty, the proceeds shall be credited to the account of the Grantee and the Grantee will continue to make regular payments pursuant to the terms of the contract until the Grantee's obligations are satisfied and the contract consummated. (ii) If the Grantee elects to repair or reconstruct, the insurance proceeds shall be applied by the Grantee to the costs of such repair or reconstruction, the Grantee shall submit the building plans to the Grantor for approval, which approval shall be granted if the value of the land after the repair or reconstruction will equal or exceed the value of the land immediately prior to the casualty. 5. Condemnation 5.1 If during the term of this Agreement, if the Property is taken by eminent domain the rights and obligations of the parties shall be as follows: a. If the amount taken is less than fifty (50%) percent of the total value of the property at the time of the taking, the entire award shall be paid to the Grantee and the contract shall continue unaffected by the taking.
b. If the amount taken is more than fifty (50%) percent of the total value of the property but less than seventyfive (75%) percent of the total value at the time of the taking, (i) If the value of the property remaining is equal to or greater than the amount of the Grantee's indebtedness under this Agreement, then the entire award shall be paid to the Grantee and this Agreement shall continue unaffected by the taking, but, (ii) If the value of the property remaining is less than equal to or greater than the amount of the Grantee's indebtedness under this Agreement, then so much of the award shall be paid to the Grantor as to reduce the outstanding indebtedness of the Grantee under this Agreement to a point where the value of the property not taken is equal to the remaining outstanding indebtedness under this Agreement, the balance of the award shall be paid to the Grantee, and this Agreement is thus accelerated as to the final payment but shall otherwise continue unaffected by the taking. However, such sums as are necessary for the useful alteration or restoration of the un-condemned portion of the property shall be applied for such purpose before the remaining portion of the award is turned over to the Grantor for reduction of the debt. In determining the value of the un-condemned portion of the property, the value shall be the fair market value after the completion of such repairs or alterations as may have been necessitated by the condemnation. c. If the amount taken is more than seventy-five (75%) percent of the total value of the property at the time of the taking, then the award shall be paid to the Grantor to the extent that is necessary to pay out this Agreement, such sum including accrued interest to date, but excluding unearned interest, and the balance of the award shall be paid to the Grantee. This Agreement shall thus be consummated and the Grantor will convey to the Grantee any of the property herein included which was not taken by eminent domain. In the event the amount of the award is insufficient to satisfy the outstanding obligations of the Grantee to the Grantor, excluding unearned interest, this Agreement shall nevertheless be terminated as previously provided in this paragraph. 5.2 The Grantee expressly agree that the provisions of this Paragraph shall apply also to any settlement or agreement reached between the Grantee and any corporation, authority or agency having the power of eminent domain whereby the Grantee voluntarily conveys to such agency, authority, or corporation in order to avoid condemnation proceedings. 6. Prepayment 6.1 The Grantee may at any time prepay the entire balance outstanding or make partial prepayment without notice to the Grantor. 6.2 The Grantor expressly agrees that: a) no prepayment charges shall be payable the Grantee if the Grantee makes full or partial prepayment. b) any such prepayment shall be applied to principal and shall not include unearned interest. 6.3 Upon full prepayment by the Grantee, the Grantor deliver the Warranty Deed to the Grantee within ten (10) days. 7. Time 7.1 Both parties expressly acknowledge and agree that time is of the essence of this Agreement. 8. Default 8.1 If either party fails to comply with the terms of this Agreement or any part thereof, or to perform any of the covenants on his part hereby made and entered into, this Agreement shall, at the option of the other party, be forfeited and terminated, and the defaulting party shall forfeit all payments made by him to date on this agreement and said amount shall be retained by the other in full satisfaction and liquidation of all damages
sustained by him. In the event of default in the performance of any of the obligations required of either party by the terms of this Agreement, the other party shall be entitled to have a receiver appointed for the property herein described, in connection with or as a part of any proceeding to foreclose this Agreement or to enforce any of its terms. The defaulting party hereby agrees to the appointment of such receiver without proof of insolvency or other equitable ground and hereby appoints the other party as attorney-in-fact with authority to consent for the defaulting party to the appointment of such receiver. 8.2 If the title secured hereby is not conveyed upon the either party fulfilling the terms of the Agreement or by default as provided in the Agreement, the other party hereby grants to the fulfilling party or his assigns, the irrevocable power of attorney to sell the Property. The sale of the property shall be by public auction, at the usual place for conducting sales at the Court House in the county where the land or any part hereof lies, in said State, to the highest bidder for cash, after advertising the time, terms and place of such sale once a week for four weeks immediately preceding such sale (but without regard to the number of days) in the newspaper published in the county where the land lies, or in the paper in which the Sheriff’s advertisements for such county are published and after giving any notice as may be required by applicable state law. The defaulting party hereby expressly waives all other notice. The fulfilling party or any person on behalf of the fulfilling party, or his assigns, may bid and purchase at such sale. The fulfilling party shall execute and deliver to the purchaser or purchasers at such sale a sufficient conveyance of the property. The conveyance shall contain recitals as to the happening of the default and the execution of the power of sale by the fulfilling. The conveyance made by the fulfilling or assigns, shall be binding and conclusive upon the defaulting party, and the heirs, executors, administrators, and assigns of the defaulting party, and the conveyance shall bar all equity of redemption of the defaulting party or the successors in interest of the defaulting party, in and to the Property. 8.3 Both parties expressly acknowledge that the irrevocable power of attorney given under the Agreement to the other to sell the Property upon default by the other party. Both parties further acknowledge that the sale shall be without any judicial hearing and without any notice other than such notice as is specifically required to be given under the provisions of the Agreement. Both parties expressly waive any and all rights which the party may have under the Fifth and Fourteenth Amendments to the Constitution of the United States, the various provisions of the Constitution for the several states, or by reason of any other applicable law, to notice and to judicial hearing prior to the exercise by the other party of any right or remedy provided to the other party, except such notice as is specifically required to be provided as per the terms of the Agreement. Each party acknowledges that each party has read, reviewed, discussed with Legal Counsel and understood terms of the Agreement and their legal effects prior to signing the Agreement. Each party expressly represents that the party has waived all the aforesaid rights knowingly, intentionally and willingly and without any inducement on the part of the other party. 9. Alternative Remedy 9.1 If the Grantee defaults, the unpaid balance due under the Agreement shall, at the option of the Grantor, become due and payable, and all costs and expenses of collection, including five percent (5%) of the principle and interest attorney's fees, shall be paid by the Grantee, and all such sums are hereby secured by the Agreement. The Grantor shall reinstate the Agreement upon receipt of ______________ Dollars ( $_____.___) reinstatement fee, if offered within sixty (60) days of the incidence of default. 9.2 If the Grantor defaults, any unpaid balance due under any of the underlying indebtedness, including taxes and insurance, shall be paid immediately by the Grantor to the unpaid lender including all fees and costs of reinstatement of the loan, or upon proper notice, the Grantor shall immediately pay to the Grantee any sums advanced by the Grantee or on behalf of the Grantee, for the purposes of protecting his position in the Property including but not limited to any underlying debt holder or any taxing authority or property insurance carrier plus five percent (5%) of the amount advanced plus interest as provided by law. If the Grantor fails to repay upon notice, the Grantee shall: a) have the right to civil action collection.
b) opt to declare this Agreement in default and commence action under the foreclosure provisions as contained in this Agreement. 10. Installments 10.1 The Grantee expressly acknowledges that the timely payment of each installment shall be an essential part of this contract. 10.2 Any installment payment not received within fifteen (15) days of the due date shall require an additional payment of five percent (5%) of the payment due as late fees. 10.3 Any installment payment not received within sixty (60) days of the due date shall constitute a default under Paragraph 8 of this Agreement. 11. Outstanding Loans 11.1 The property herein described has an existing underlying mortgage(s) in the favor of ________________________________________________________, loan # ______________________, their successors and assigns. 11.2 The Grantor expressly agrees to pay when due all payments due to any lender. 11.3 Upon payment by Grantee of the purchase price, the Grantor shall immediately pay off any outstanding loan(s) from the proceeds, and provide whatever proof the Grantee dictates so as to deliver free and clear title to Grantee. 11.4 The Grantor acknowledges that this Agreement expressly prohibits additional indebtedness. The Grantor shall not allow any additional indebtedness, financing, refinancing or debt, judgments or liens, other than current year taxes, to become liens against the Property. 11.5 The Grantor expressly agrees to fully warrant and defend the title against any liens so placed. 12. Maintenance 12.1 The Grantee will not permit, commit or suffer waste and will maintain the improvements 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 the Grantor's title. 13. Notice 13.1 Any notice necessary under this Agreement may be sent by first class mail to the last known address of the party to be notified. 14. Service of Process 14.1 Unless specifically disallowed by law, should litigation arise hereunder, service of process therefore may be obtained through certified mail, return receipt requested. 15. General 14.1 This Agreement represents the entire agreement and understanding between the undersigned parties with respect to the subject matter of this Agreement, and supersedes any other agreement or understanding, written
or oral, that the undersigned parties hereto may have had with respect thereto. No statement or inducement with respect to the subject matter by either party or by any agent or representative of either party which is not contained in this Agreement shall be valid or binding between the undersigned parties. 14.2 No provision of this Agreement may be modified, waived or amended except by a written instrument duly executed by each of the undersigned parties. 14.3 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 14.4 This agreement shall be binding on the undersigned parties, their heirs, personal representatives and/or assigns and shall not be assigned except as herein provided. 14.5 Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. 14.6 Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa. 14.7 In the event that any provision of this Agreement is invalid under any Statute or is held invalid by a court of competent jurisdiction, the remaining provisions shall nonetheless by enforceable according to their terms. 14.8 A Notice of Agreement for Real Estate Deed shall be recorded. Such notice shall state the default and cure provisions of this Agreement. 14.9 The Grantee shall have the right to assign the Grantee’s interest under this Agreement without prior written approval of the Grantor to such assignment. 14.10 The substantive laws (as distinguished from the choice of law rules) of the State of _____________applicable to contracts shall govern (i) the validity and interpretation of this Agreement, (ii) the performance by the parties of their respective obligations hereunder, and (iii) all other causes of action (whether sounding in contract or in tort) arising out of or relating to this Agreement or the termination of this Agreement. 15. Special Stipulations __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ ______________________________________________________ IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year first above written.
__________________________________________ Witness __________________________________________ Witness
_________________________________(Seal) Grantor: _________________________________(Seal) Grantee:
State of ______________ County of ____________ Sworn to and subscribed before me of even date.
________________________________________ NOTARY PUBLIC My Commission Ends: _____________________