USA lenders, sell and assign part of your interest in an installment contract on a real estate transaction with this Partial Purchase Agreement for Installment Contract ⁄ Contract for Deed.
- The buyer agrees to purchase the interest without recourse as to the borrower's future financial performance.
- The buyer will be entitled to a specified number of installment payments, following which the interest will revert back to the seller.
- The seller's liability is limited to the seller's residual interest in the Contract.
- The agreement is conditional upon the buyer obtaining adequate funds to finance the purchase.
- If the seller cancels the agreement prior to closing, the seller must pay a cancellation fee, plus any costs incurred by the buyer.
- The seller indemnifies the buyer against any liability or expense arising from any inaccuracy or breach of any of the seller's representations or warranties.
This USA Partial Purchase Agreement for Installment Contract ⁄ Contract for Deed form is available as a MS Word download and is fully editable to meet your requirements.
PARTIAL PURCHASE AGREEMENT FOR INSTALLMENT CONTRACT / CONTRACT FOR DEED THIS AGREEMENT made effective as of the _____ day of ______________, _______. BETWEEN: [NAME OF BUYER] [address] (“Buyer”) - and - [NAME OF SELLER] [address] (“Seller”) WHEREAS, Buyer hereby agrees to purchase and Seller hereby agrees to sell and assign, without recourse as to the future financial performance of the Vendee(s), the Installment Contract (hereinafter referred to as the “Contract”) described as follows: Date of Contract/Contract for Deed: ________________________, ________ Vendee (Payor): _______________________[insert name of person who pays the loan] Vendor (Payee): _______________________[insert name of person who receives the payments, usually the seller] Original Principal Amount of Deed: _________________ dollars ($_____________) Current Balance Owing on Deed: _________________ dollars ($_______________) Interest Rate: _______________ percent per annum (___________%/annum) Amortization Period: __________________ (______) months [insert months in both words and numerals] Balloon (if any): Balloon Date: _______________________, _________ Balloon Amount: ___________________ dollars ($________________) Monthly Payment Amount: __________________ dollars ($_______________) Due Date of Payment Each Month: _____________________________________ First Payment Made on the ________ day of _____________________, __________. Last Payment Made on the ________ day of _____________________, ___________. Next Payment Due on the _______ day of _____________________, ___________. -2- Number of Payments Made: ___________________ (_______) [insert number in both words and numerals] Number of Payments Remaining: _______________ (_______) [insert number in both words and numerals] Date of Contract/Contract for Deed: _____________________________, ________ -3- Recording Date of Contract/Contract for Deed: _____________________, ________ County of Recording: ______________________ State of Recording: ________________________ Book & Page of Recording: Book _____________________, Page(s) _____________________ Type of Real Estate (e.g. Single Family Home, Vacant Land, Commercial Property, etc.): _______________ Physical Address of Real Estate: ________________________________________________________________ _____________________________________________________________________________________________ Legal Description of Real Estate: See attached “Exhibit A”. Seller hereby warrants and represents that all of the above information is true and correct. The security interest described above shall also be assigned to Buyer herein. 1. PARTIAL ASSIGNMENT: Buyer is buying only a portion of the remaining balance due on the Contract. 1.1 BUYER’S ENTITLEMENT: For the sum stated in Section 2, Buyer shall be entitled to receive _____________ (_______) [insert number of months in both words and numerals] monthly installments of _______________________ dollars ($___________) per payment, beginning with the installment due on the _______ day of ____________________, _________, and ___________ dollars ($___________) of the balloon payment due on the ______ day of __________________, _______. For the purposes of determining the amount due to Buyer in the event of an early payoff or buyout, this sum represents the net sum of ________________ dollars ($________________) plus interest on the unpaid balance, at a rate of ____________ percent per annum (__________%/annum), compounded monthly. In addition to principal and interest, upon satisfaction of Buyer’s interest hereunder (including but not limited to prepayment by Vendee, default by Vendee, or buyout by Seller), Buyer shall also be entitled to receive reimbursement for any and all expenses which Buyer may have incurred as a result of acquiring and holding the Contract, including, but not limited to: (a) advances on superior liens and encumbrances; (b) costs; (c) disbursements; (d) title fees and appraisal fees; (e) reasonable attorney’s fees; (f) taxes and insurance premiums; (g) repairs and maintenance expenses; and (h) foreclosure costs and real estate commissions; together with interest thereon at the maximum rate permitted by applicable law from the date the expenses were incurred. If Buyer’s interest hereunder is satisfied in full after one year from the date hereof, reimbursement for expenses and interest thereon shall not include acquisition costs (which shall be deemed to be costs incurred prior to the actual date of closing hereof), but rather shall only include any and all costs of holding the Contract (which shall be deemed to be costs incurred after the actual date of closing hereof). All of the above mentioned sums to which Buyer is entitled, including the original net sum and interest thereon, less payments received by Buyer from Payor, and including expenses and interest thereon to which Buyer shall be entitled in accordance with this Section 1.1, shall hereinafter be referred to as the “Buyer’s Entitlement”. Seller’s liability for Buyer’s Entitlement shall be limited to Seller’s residual interest in the Contract. -4- 1.2 SELLER’S RETAINED INTEREST: Seller shall retain ownership of the entire remaining portion of the Contract. Seller’s interest in the Contract shall at times be subject and subordinate to Buyer’s Entitlement under this Agreement. Upon receipt in full of Buyer’s Entitlement, the interest of Buyer in the Contract shall terminate, at which point, Seller shall become immediately vested with complete ownership of any residual portions of the Contract. Buyer, upon receipt of Buyer’s Entitlement (whether in accordance with the terms and conditions of the Contract, due to prepayment, or due to default), shall execute any reasonably required assignment instruments back to the order of Seller (as required to effect full ownership of any residual portions of the Contract by Seller), and to advise Payor(s) to make any future payments to Seller. 1.3 SERVICING OF CONTRACT: Buyer shall service the Contract during the said time period only. Buyer shall exert reasonable collection efforts to ensure that Payor makes all payments due under the Contract in a timely fashion. 1.4 PREPAYMENT: Should Contract be paid in full prior to the date of maturity of Buyer’s Entitlement, Buyer shall be entitled to receive and retain out of such funds, the full amount of Buyer’s Entitlement with proper credit given against such amount for any previous payments made by Payor, with Buyer tendering to Seller any proceeds over and above the amount due to Buyer. 1.5 PARTIAL PREPAYMENT: Should Payor make a partial prepayment on the Contract, that partial prepayment shall be applied as specified in Section 1.4. 1.6 ATTORNEY-IN-FACT: Seller designates Buyer as its agent and Attorney-in-Fact for the collection of monies to Seller in connection with a full or partial payoff of the Contract. 1.7 RIGHT TO REASSIGN: Buyer shall not encumber, pledge, hypothecate, or assign the Contract during the period it administers such Contract, except to the extent of Buyer’s partial interest hereunder. 1.8 TERMINATION OF ASSIGNMENT: The partial assignment of the Contract shall terminate upon Buyer’s receipt of Buyer’s Entitlement, or at any time prior, as Buyer deems fit. Seller reserves the right to terminate this Agreement at any time by paying Buyer the full amount of Buyer’s Entitlement, in accordance with Sections 1.1 and 1.4. If Seller does not opt to exercise Seller’s right to buyout Buyer, Buyer may terminate any residual interest that Seller may have in the Contract, notwithstanding any term or provision contrary in this Agreement, at any time sixty (60) days after a default has occurred on the Security Instrument, by paying Seller the amount then owed on the Contract, minus Buyer’s Entitlement. 1.9 ASSIGNMENT OF HAZARD INSURANCE: a. Seller shall provide Buyer with an assignment of hazard insurance proceeds, thereby adding Buyer as an additional loss payee to any insurance on the secured property. b. Until such time as Buyer receives Buyer’s Entitlement in full, Seller shall, by signature hereunder, assign to Buyer all of Seller’s rights to proceeds of any hazard loss payment or settlement. Such proceeds shall be applied in the following order: (a) first to any repairs or restoration of the insured property; (b) then to satisfy the balance due to Buyer; and (c) any remainder to Seller in accordance with the underlying Security Instrument. -5- -6- 1.10 RIGHT OF FIRST REFUSAL: Should Seller opt to sell all or any of the retained portion of the Contract to a third party buyer, Seller shall grant Buyer a first right of refusal to purchase the retained or reserved right, title, and interest on and to the Contract. To implement first right of refusal, Seller shall submit to Buyer written notice of the amount of money and the terms upon which an offer to purchase is received. Buyer, thereafter, shall have fourteen (14) days from receipt of said notice in which to accept or decline the option to purchase the remaining portion or percentage of the reserved portion of the Contract, on the same terms and conditions as submitted in the aforesaid offer to purchase. If Buyer declines the offer to purchase, Seller may sell the same percentage offered to Buyer, on the same terms and conditions, provided Seller does not sell a different portion of the interest reserved, nor sell on different terms and conditions than those offered to Buyer. 2. PRICE AND FINANCING: The purchase price for the Contract shall be _____________ dollars ($__________), payable as follows: [insert payment schedule]. This Agreement is conditional upon Buyer obtaining financing to purchase Seller’s interest in the Contract, upon financing terms Buyer deems satisfactory. 3. INTERIM PAYMENT RECEIPTS: Seller shall keep any payments received during the pendency of this Agreement. Such payments shall be deducted from Seller’s proceed at the time of closing. 4. REQUIRED DOCUMENTATION: Seller shall, within ten (10) days of the date of this Agreement, provide Buyer with the following documents: a. Copy of Original Contract b. Amortization Table c. Title Policy – to be obtained or prepared by Buyer d. Copy of Hazard Insurance Policy e. Credit Report on Contract Payor (or Credit Report Authorization) – to be obtained or prepared by Buyer f. Payment History (Affidavit) – to be obtained or prepared by Buyer g. Copy of any and all Underlying Notes, Deeds of Trust, or other Liens, including payoff amounts for each h. Appraisal of Real Estate – to be obtained or prepared by Buyer i. Copy of Original Closing Statement j. Executed Vendee Estoppel Affidavit – to be obtained or prepared by Buyer k. Executed Vendor Estoppel Affidavit – to be obtained or prepared by Buyer l. Picture(s) of the Property m. Corporate/Partnership Resolution [if applicable] Seller shall provide the original Contract and Closing Statement at closing. 5. REVIEW AND INSPECTION OF DOCUMENTATION AND PROPERTY: This Agreement is contingent, at the exclusive option of Buyer, upon the receipt and satisfactory review of the items in Section 4, and upon a physical inspection of the real estate securing the Contract. 6. CLOSING: Seller and Buyer agree that the Closing for the assignment set forth in this Agreement shall occur on or before fifteen (15) business days after receipt of all items listed in Section 4 and completion of the physical inspection of the property. The Closing shall
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