Purchase Land Mortgage

Document Sample
Purchase Land Mortgage Powered By Docstoc
                                   (Updated for September 2010)

This Contract of Sale is made on the __________day of ______________, 2010.

BETWEEN Original Resources Inc, Seller and _______________________________ Buyer. It is agreed
that the Seller shall sell and the Buyer shall buy the following described property/note UPON THE
REAL ESTATE TRANSACTIONS set forth within this contract.

1. LEGAL DESCRIPTION of real estate:
Buyer may select the desired income for 15 years (180 payments) for each of its Land Contract (LC)
Notes that shall be secured against REO properties to be assigned at a later date. The sale of each
corresponding LC Note shall be made at a discounted purchase price as stated below.

        Each REO property shall be assigned to Buyer to match the selected criteria:
                      (Payments for all LC Notes begin on the 90th day)
        $395/month…($4,740/year) LC Note $39,000* Discounted P. Price: $35,500
                    (Principal & Interest: 13.35%)... Total payments in 15 years: $71,100
        $375/month…($4,500/year) LC Note $37,000* Discounted P. Price: $33,750
                    (Principal & Interest: 13.33%) ... Total payments in 15 years: $67,500
        $350/month…($4,200/year) LC Note $34,500* Discounted P. Price: $31,500
                    (Principal & Interest: 13.33%) ... Total payments in 15 years: $63,000

* The face value of the LC Note amounts may vary based on the interest rate charged. The calculation is
based on the total payments expected during the length of the loan (mostly 15 to 30 years)
- Notes may be created, modified and/or seasoned.
- All amortization schedules herein are for 15 yrs – 180 payments (Principal and Interest), assigned
note(s) may vary in amortization schedule but shall always add up to total payments purchased
- End Buyers make additional monthly payments for property Tax and Insurance
- Other LC Notes are available based on same terms and conditions.

- 2. PURCHASE PRICE ______________________________________________
Number of properties/LC Notes: ____(________)_________________________
Deed Preparation and recordation Fee: $450.00 ea. ________________________
Sales Support Package and 6 months Guarantee: $1,500 ea. ___________________
Due at closing by Buyer: $_______________________Funds Received on__________________
First payment shall be made on: ______________________________________
Payment amount selected: $_____________-Total payments purchased ___________________

3. RESTRICTIONS, EASEMENTS, LIMITATIONS: Buyer shall take title subject to: (a) Zoning,
restrictions, prohibitions and requirements imposed by governmental authority, (b) Restrictions and
matters appearing on the plat or common to the subdivision, (c) Public utility easements of record,
provided said easements are located on the side or rear lines of the property, (d) All taxes owed, and
any other liens or encumbrances of record paid by Seller e) property sold to End Buyers based on the
payment amount(s) selected for a 15 year amortization.
4. PLACE OF CLOSING: Closing shall be held at the office of the Seller or Seller’s representative or at
any other location agreed upon by the parties.

5. DOCUMENTS FOR CLOSING: Seller shall receive a Deed from its inventory servicers at which time
Seller or Seller’s representative shall prepare a Deed for transfer to Buyer.

6. OTHER AGREEMENTS: No agreements or representations, unless incorporated herein, shall be
binding upon any of the parties. This contract sets forth the full and complete understanding of the
parties hereto. No amendment, modification or supplement to this Contract shall be binding unless
memorialized in writing and duly executed and delivered by each of the parties hereto to the other
party. Nothing herein shall be construed as constituting a partnership or joint venture between Buyer
and Seller.

7. CLOSING DATE: This contract shall be closed on date funds have cleared Seller’s bank account. The
appropriate form of deed shall be delivered within one hundred and eighty (180) days of contract
closing, unless extended by Seller or Buyer, at which time Deed will be sent for recording by Buyer as
previously agreed at Buyers own expense. If Seller shall handle the recording of the Deed, Buyer shall
pay seller the associated fees and expenses.

8. PROPERTY CONDITION: (A) Buyer acknowledges and agrees that Seller has not made and hereby
specifically disclaims any warranty, guarantee, or representation, oral or written, past, present, or
future, of, as to, or concerning the property in general and more specifically (i) the nature, square
footage, condition, value, or quality of the geology, and the suitability thereof and the property for any
and all activities and uses which Buyer may elect to conduct thereon, (ii) the manner, construction,
condition, quality, the state of repair or lack of repair of any of the property, (iii) except for any
warranties contained in the deed, the nature and extent of any right of way, lease, possession, lien,
encumbrance, license, reservation, condition, or otherwise (iv) the compliance of the property or its
operation with any laws, rules, ordinances, or regulations of any government or other body, and, (v)
the income to be derived from the property, buyer hereby expressly acknowledges and agrees that
buyer understands that the property is a foreclosed property that is sold “as is where is” and “with all
faults” even to the next End Buyers who will in the future or have already in the past inspected and
examined the property to the extent deemed necessary in order to purchase it as is and to enable all
buyers to evaluate the purchase of the property and or its associated Land Contract Note. Buyer hereby
further acknowledges and agrees that buyer is relying solely upon its own decision and not making this
purchase on the basis of any additional information provided or to be provided by seller. Seller makes
no warranty of representation expressed or implied, or arising by operation of law, including, but in no
way limited to any warranty of condition, habitability, merchantability, or fitness for a particular
purpose except otherwise specified herein. It is further agreed that seller has not warranted, or does not
hereby warrant the property or any improvements located thereon now or in the future will meet or
comply with the requirements of any safety code or regulation of the state, city, or county in which the
property is located, or any other authority or jurisdiction.

B) If the property was built prior to 1978, Seller discloses to all Buyer (including End Buyers) that the
property may contain lead-based paint or other sources of lead. Exposure to lead-based paint or other
sources may place young children at risk of developing lead poisoning. Lead poisoning in young
children may produce permanent neurological damage, including learning disabilities, reduced
intelligence quotient, behavior problems and impaired memory. Lead poisoning also poses a particular
risk to pregnant woman.

Buyer agrees that it is purchasing the property “as-is” without any representations or warranties
whatsoever as to the condition of the property. Buyer further agrees that the seller has no responsibility
or liability for, and buyer hereby unconditionally releases seller from, any and all liability, known and
unknown, present or future, that is based upon or related to, the existence of lead or lead-based paint
on or about the property. Buyer acknowledges that it has been informed by seller of possible health
hazards posed by exposure to lead from lead based paint or other sources on or about the property.
Buyer further acknowledges that buyer has waived the opportunity to conduct a risk assessment for the
presence of lead-based paint hazards on the property.

9. ENVIRONMENTAL MATTERS: Seller makes no warranty or representation to Buyer that Seller or
any other owner, tenant, or occupant of the Property ever caused or permitted to exist, as a result of
any intentional or unintentional action or omission, a releasing, spilling, leaking, pumping, pouring,
emitting, emptying or dumping of any toxic material or hazardous substance or waste on the Property.
10. INDEMNIFICATION: Buyer agrees to indemnify and hold harmless Seller and its agents from and
against any and all losses, claims, demands, liabilities, costs, damages and expenses (including
attorney’s fees and costs) that Seller may incur arising from the Buyer’s actions or failure to act on,
respond to or comply with any local, state or federal law, rule or ordinance affecting the Property
including, but not limited to, building code requirements, delinquent taxes, nuisance claims or
abatements thereof, condemnation proceedings, lien enforcement actions, and the like. Further, Buyer
acknowledges that the Property may be subject to proceedings in law or equity to abate, correct, or
otherwise comply with local, state or federal requirements regarding the Property and that this
indemnity shall also apply in such instances.

11. SPECIAL CLAUSES: Buyer considers itself a knowledgeable and sophisticated institutional
investor having such knowledge of financial and business matters and is capable of evaluating the
merits and risks of investment and specifically acknowledges that this is not a consumer transaction
but is for investment and business purposes.

Accepted by Buyer:                                             Accepted by Seller:

X                                                             X
_________________________________                   _____________________________
Buyer Signature:                                          Seller Signature:

                                                     Original Resources Inc. / Cherif Medawar
_________________________________                    ____________________________
(Print Name)                                                (Print Name)

_________________________________                     _____________________________
(E-mail Address)                                             (E-mail Address)

                                                                (408) 858-5748
_________________________________                     _____________________________
(Phone Number)                                               (Phone Number)

                                                             4848 San Felipe Rd
_________________________________                       _____________________________
(Street Address) *                                             (Street Address) *

                                                            San Jose, CA. 95135
_________________________________                       _____________________________
(City, State, Zip) *                                           (City, State, and Zip) *

                     *Legal Address to receive contract (No P.O. Box)

                                                         Cherif Medawar, President
                                                         Original Resources, Inc.

Buyer wishes to take Title as (vesting name):_________________________________

              Addendum to Sales Agreement
Each Installment Sale Land Contract Note (LC Note) shall be secured
against an REO property. Please be advised that Original Resources, Inc. (Seller)
shall assign each of your notes to a corresponding REO property from its own
inventory within a few weeks of purchase date.

No verbal or other offers have been made or promised beyond what is in writing in this
sales agreement.

By making this purchase you authorize Original Resources, Inc. and its Support
Team (Support) to perform the following services up to and until your LC Note
is secured against the REO property (The Property) from its inventory of

The Guarantees on the LC Note:

1) Support shall begin making a direct payment to you on each of your notes
   in the amount of _____________ beginning on the 90th day after the receipt of your
   purchase funds. Support shall continue making the payments monthly up to and
   until the date each property is assigned to you backing each of your LC notes
   purchased at a discount.

2) Each property assigned to you will come in the mail in a packet of information. In
   that packet you will have the following information:
      A) The property with proof that all liens have been paid (i.e. back taxes- utilities)
      B) The End Buyers confidential personal and financial data.
      C) The LC Note with the payment amount youʼve selected.
      D) The form for the mortgage note servicing company.
      E) The insurance company information and website.

3) Fill out the form for the mortgage note servicing company indicating your bank
   account and mail it directly to them so they can invoice the End Buyers and deposit
   the payments (Principal and Interest) into your bank account along with the
   property taxes and insurance that will be paid monthly by End Buyers.

4) Fill out the insurance form on the insurance companyʼs website to get dwelling
   (property) coverage and personal liability coverage. In your packet there will be a
   direct line with the insurance broker who can assist you by phone before you mail
   your form to them. Insurance is usually set up within 24-48 hours.

5) You should then receive the principal, interest, tax and insurance (PITI) payments
   on a monthly basis deposited into your designated bank account all handled
   through the national note servicing company. You pay the insurance company and
   property tax (from the money you collect from the End Buyers) and you keep the
   principal and interest income for yourself.
6) Support shall prepare the Deed for each of your properties (as soon as they arrive
   from the bank within 180 days or less) and shall transfer the ownership from
   Original Resources, Inc. to you (You can take vesting/ownership in your name or in
   your entityʼs name as you chose). Your purchase price includes the fee of the deed
   transfer. Hold on to the Deed for 24 months to ensure the End Buyers make
   satisfactory payments.

7) On the 25th month you may call any title company and give them a copy of your LC
   note so they can record it as a first lien (mortgage note) against the property and
   the title company will send you a form called a “Quit Claim” deed for you to sign.
   The title company can then transfer ownership of property to the End Buyers. The
   property will have you as the first lien holder (similar to a bank loan) and End
   Buyers will have to pay you off in full if they choose to refinance or sell etc. (My
   office can handle this process as well and has done so nationwide for a small fee).

The $1,500 fee for Sales Support Package includes the following
services for each REO property to create a LC Note:

      1) Support dispatches staff members from the road team, to go to
         each property to survey the neighborhoodʼs rental and sales comparables.
         The road team members take photos, inspect the condition and place new
         combination lock boxes on each property along with the For Sale signs in
         the front yard and front windows with an 800# that is forwarded to the office

      2) Support takes all incoming calls from potential End Buyers and
         qualifies them by having them fill out an application, and by verifying their
         employment, income and rent payment history, not their credit score.

      3) Support screens the pool of applicants and chooses the best End
         Buyers for each property. Then they have the End Buyers sign and notarize
         the Land Contract Note.

      4) Support sends you the Installment Sale Land Contract Note
         with the document from the national note servicing company paper work
         within a few weeks of your purchase date (you are already receiving the
         payments against each of your LC Notes). You must fill out the necessary
         documents immediately, accurately and completely to inform the note
         servicing company where they should deposit the principal and interest
         payments coming to you along with the additional $100 that they will collect
         for tax and insurance on your behalf. (The set up fee for this service is
         approx. $75 and they will withdraw it from the first payment. The subsequent
         monthly fee for the service is approximately $10/month every month)

      5) Enjoy the income for the 15 years. You should have no expenses because
         the End Buyers of your property are paying property taxes,
      insurance, maintenance, utilities etc. You are in a position similar
      to a bank, and the End Buyers are, in fact, the owners of the property. They
      pay you monthly through the national note servicing company the property
      taxes and insurance (payments are directly deposited into your bank
      account monthly) and you may choose to have a direct monthly withdrawal
      to the insurance company (you can arrange for that when you set up the
      insurance on their website) and you may pay the property taxes once a year
      when the tax bill comes in. (Again you would have already collected these
      funds from the End Buyers every month).

6) You will continue holding the deed to each property and the land contract
   note for 24 months to ensure End Buyers make 24 consecutive
   satisfactory payments to you. Then you will sign a Quit Claim
   Deed to the End Buyers and have the Land Contract Note
   recorded as a first mortgage lien against the property. Any
   local title company can do this service including Original Resources, Inc.

7)    If you wish to resell the note to another investor you can email me at and I can show you a sample contract to use
      (Please check with your own real estate broker or attorney regarding such a

8)    Customer service and 6 months Guarantee: (For Investors who paid
      the Sales Support Package)
          A) The Support team shall follow up with End Buyers on Investor’s
      behalf, each month for the first 6 months to ensure payments are made on
      time. After 6 months the likelihood of default decreases substantially. If a
      default occurs during the guarantee period (the first 6 months) due to End
      Buyers non compliance, Support shall follow up to attempt to collect late
      fees and/or evict if necessary. The eviction fee is approximately $450 billed
      to Investor. All coordination and eviction work shall be handled by the
      support team.
                 B) The Support team shall resell the property to other End Buyers
      on a new installment sale Land Contract Note (LC Note) for 15 years at no
      additional fee during the guarantee period (first 6 months).

9)    It is the Buyer/Investorʼs responsibility to follow up with End Buyers for
      collection. if Sales support Package has been purchased, the first 6 months
      of payments and follow up is performed by the Support team.

10)   If a default occurs on the 7th month and beyond it may be more beneficial
      financially (based on local market and/or number of REOs) to evict the
      defaulted End Buyers (approx. $450 for eviction) and resell the property at
      full market price through a local realtor. Investor may choose to retain
      Original Resources, Inc. to resell the property on a new LC Note maybe at a
           higher selling price. (Fee shall be $1,500 for the Sales Support Package-
           Such fee and service may change in the future)

Summary of service and guarantees:

   1) Original Resources Inc. is selling the end goal of getting the investor a Land Contract
      Note (Mortgage Note) secured against a real estate property producing a minimum
      monthly income of principal and interest as selected from the first page in this sales
      agreement for a period of 15 years or as negotiated at high P&I income.
   2) Original Resources, Inc. provides the services necessary to create each LC Note and
      secures it against each REO property from its inventory.
   3) Original Resources, Inc. reserves the right to assign a property to you free of any and
      all liens from its nationwide pool of properties matching the purchased income criteria.
   4) Original Resources, Inc shall make the payments to you until a suitable LC Note is
      assigned to you.
   5) Original Resources, Inc offers a Sales Support Package that guarantees performance for
      the first six months or an eviction and resale occurs at the small fee of eviction only.

Accepted by Buyer:                                             Accepted by Seller:

X                                                             X
_________________________________                       _____________________________
Buyer Signature:                                             Seller Signature:

                                                      Original Resources Inc. / Cherif Medawar
_________________________________                       _____________________________
(Print Name)                                                   (Print Name)

_________________________________                        ______________________________
(E-mail Address)                                                (E-mail Address)

                                                                  (408) 858-5748
_________________________________                        ______________________________
(Phone Number)                                                  (Phone Number)

                                                                  4848 San Felipe Rd
_________________________________                        ______________________________
(Street Address) *                                              (Street Address) *

                                                                 San Jose, CA. 95135
_________________________________                        _______________________________
(City, State, Zip) *                                            (City, State, and Zip) *

                     *Legal Address to receive contract (No P.O. Box)

                                                         Cherif Medawar, President
                                                         Original Resources, Inc.
Please scan and email the contract to:
Or Fax contract to: 1-888- 587-6622

Payment through bank deposit or wire into Wells Fargo Bank:
Wiring instructions:
Wells Fargo Bank N.A.
San Francisco, CA.
Routing number: 121000248
Account number: 53536-77XXX
Beneficiary: Original Resources, Inc.

Please email: to confirm deposit or wire was received
Amount to be deposited: ____________
If international wire: Swift code: WSBIUS6S

Buyer agrees to give a written and/or electronic (Video) success story if requested to do so
by the Seller. The success story must be truthful and factual and given after Buyer has
received the LC Note and only if the experience and returns are satisfactory to the Buyer.

There is a 30-day 100% satisfaction guaranteed. If for any reason the Investor changes
his/her mind a full refund of the purchase price of the Note/property (minus any
payments made to Buyer and Title preparation fee) shall be issued to Investor and no
further obligation or performance shall be expected by either party.

Original Resources, Inc reserves the right to cancel any transaction and return funds to
any Investor/Buyer at net cost (what was paid to purchase notes minus what was received
in payments) up to and until Deeds are transferred and recorded in Investor’s name.


Buyer ________ Seller_________

Description: Purchase Land Mortgage document sample