Contract for the Sale of Residential Property with Assumption of Outstanding Mortgage
Agreement made on the (date), between (Name of Buyer) of (street address, city,
county, state, zip code), referred to herein as Buyer, and (Name of Seller), of (street
address, city, county, state, zip code), referred to herein as Seller.
Whereas, Seller is the owner of the lot or parcel of real property situated in (name of
city), (name of county), (name of state), and described in Exhibit A attached hereto and made a
part hereof. The real property consists of a residential site at (address of property), with
improvements on the property as follows: (description of improvements). Said real property is
hereinafter referred to as the Property; and
Whereas, Seller desires to sell and Buyer desires to buy Property, for the purchase price
and on the terms and conditions set forth below.
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Purchase Price and Terms of Payment
The purchase price for Property is $____________, which shall be paid as follows:
A. By cash in the amount of $ ______________ on the signing of this Agreement.
B. By assumption of an existing encumbrance on Property in the form of a (e.g.,
mortgage or deed of trust) owned by (Name of Mortgagee), which Buyer expressly
assumes and agrees to pay. The present principal balance outstanding on the
(mortgage or deed of trust) is $ _______________.
C. By the giving of a purchase money (mortgage or deed of trust) to be executed by
Buyer to Seller, securing Buyer's Promissory Note to Seller which is payable in equal
installments of $ ___________, including interest, commencing on the (number) day of
the month following the close of this transaction and continuing at monthly intervals on
the same day of each successive month. Interest on said Note shall be ____% per year.
The Promissory Note shall be in form substantially as set forth in Exhibit B attached
hereto and made a part hereof. The Purchase Money (mortgage or deed of trust) shall