USA Partial Purchase Agreement for Installment Contract / Contract for Deed by Megadox

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									         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.
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                                                   -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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