Fillable Printable Contract for Deed - Minnesota

Contract for Deed - Minnesota

Form No. 2004-001-SES—CONTRACT FOR DEED

Individual Seller Minnesota Uniform Conveyancing Blanks (2004)

Contract for Deed - Page 1 of 5

THIS CONTRACT FOR DEED is made on the above date by Seller

(Whether one or

more), and, Purchaser

Seller and Purchaser agree to the following terms:

1. PROPERTY DESCRIPTION: Seller herby sells, and Purchaser hereby buys, real

property in Washington County, Minnesota

, described as follows:

LEGAL DESCRIPTION

Together with all hereditanments and appurtenances belonging thereto (the

Property). Commonly known as: Forest Lake MN 55025

2. TITLE. Seller warrants that title to the Property is, on the date of this contract,

subject only to the following exceptions:

(a) Covenants, conditions, restrictions, declarations and easements of record, if

any;

(b) Reservations of minerals or mineral rights by the State of Minnesota, if any;

(d) The lien of real estate taxes and installments of special assessments which

are payable by Purchaser pursuant to Paragraph 6 of this contract; and

(e) The following liens or encumbrances:

3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser’s prompt and full

performance of this contract, Seller shall:

(a) Execute, acknowledge and deliver to Purchaser a Warranty Deed, in

recordable form, conveying marketable title to the Property to Purchaser,

subject only to the following exceptions:

(i) Those exceptions referred in paragraph 2(a), (b), (c) and (d) of this

contract;

(ii) Liens, encumbrances, adverse claims or other matters which

Purchaser has created, suffered or permitted to accrue after the date

of this contract; and

(iii) The following leans or encumbrances:

(b) Deliver to Purchasers the abstract of title to the Property or, if the titled is

registered, the owner’s duplicate certificate of title

4. PURCHASE PRICE. Purchasers shall pay to Seller, at designated place, the sum of

212,000.00 AT 7.25% PRINCIPLE AND INTEREST ONLY. Paid as follows: $10,000

down having been paid in 2008, receipt of which is acknowledged; an additional

$3,500 to be paid at closing. The balance of $198,500 to be paid, at an interest rate

of 7.25% per annum, in monthly payments of $1,269.75, commencing on October

1st 2009 and continuing until paid in full.

5. PREPAYMENT. Unless otherwise provided in this contract, Purchasers shall have

the right to fully or partially prepay this contract at any time without penalty. Any

partial prepayment shall be applied first to payment amounts then due under this

contract, including unpaid accrued interest, and the balance shall be applied to the

principal installments to be paid in the inverse order of their maturity. Partial

prepayment shall not postpone the due date of the installments to be paid pursuant

to this contract or change the amount of such installments. Seller encourages a 48

month term or longer; however, the buyer is not obligated to any prepayment.

Form No. 2004-001-SES—CONTRACT FOR DEED

Individual Seller Minnesota Uniform Conveyancing Blanks (2004)

Contract for Deed - Page 2 of 5

6. REAL ESTATE TAXES AND ASSESSMENTS. Sellers shall pay, before penalty

accrues, all real estate taxes and installments of special assessments assessed

against the property which are due and payable in the year 2009

up to the date of

closing and in all subsequent years. Real estate taxes and installments of special

assessments which are due and payable in the year in which this contract is dated

shall be paid as follows: Taxes are to be paid by Purchaser by a monthly escrow

payment to Seller of an amount equal to 1/12th of the annual real estate taxes,

commencing with the first payment. Seller shall be responsible for payment of the

taxes as assessed and due, and shall provide written proof of payment of the same

to Purchaser no later than the 30th of the month any such payment is due. The

amount of the monthly tax escrow payment will be adjusted annually, when Seller

and Purchaser have received notice of the proposed Property Tax Payment from

Washington County. Taxes for 2009 are $2,432.00, requiring a monthly tax escrow

payment of $202.67.

Seller warrants that the real estate taxes and installments of special assessments

which were due and payable in the years proceeding the year in which this contract

is dated are paid in full.

7. PROPERTY INSTURANCE.

(a) INSURED RISK AND AMOUNT. Purchaser shall keep buildings,

improvements and fixtures now or later located on or a part of the property

insured against loss by fire, extended coverage perils, vandalism, malicious

mischief and, if applicable, steam boiler explosions for at least the amount of

encumbrances

. If any of the buildings, improvements or fixtures is located in

a federally designated flood prone area, and if flood insurance is available for

that area, Purchasers shall procure and maintain flood insurance in

amounts reasonably satisfactory to Seller.

(b) OTHER TERMS. The insurance policy shall contain a loss payable clause in

favor of Seller and seller’s mortgage company (CitiGroup) which provides that

Seller’s right to recover under the insurance shall not be impaired by any

acts or omissions of Purchasers or Seller, and that Seller shall otherwise be

afforded all rights and privileges customarily provided a mortgage under the

so-called standard mortgage clause.

casualty, Purchasers shall promptly give notice of such damage to Seller and

the insurance company.

8. DAMAGE TO THE PROPERTY.

(a) APPLICATION OF INSURANCE PROCEEDS. If property is damaged by fire or

other casualty, the insurance proceeds paid on account of such damage

shall be applied to payment of the amounts payable by Purchasers under

this contract, even is such amounts are not then due to be paid, unless

Purchasers make a permitted election described in the next paragraph. Such

amounts shall be first applied to unpaid accrued interest and next to the

installments to be paid as provided in this contract in the inverse order of

their maturity. Such payment shall not postpone the due date of the

installments to be paid pursuant to this contract or change the amount of

such installments. The balance of insurance proceeds, if any shall be the

property of the Purchasers.

(b) PURCHASER’S ELECTION TO REBUILD. If purchaser is not in default under

this contract, or after curing any such default, and if the mortgagees in any

prior mortgages and sellers in any prior contracts for deed do not require

otherwise. Purchaser may elect to have that portion of such insurance

proceeds necessary to repair, replace or restore the damaged Property (the

repair work) deposited in escrow with a bank or title company qualified to do

business in the State of Minnesota, or such other party as may be mutually

agreeable to Seller and Purchaser. The election may only be made by written

notice to Seller with sixty days after the damage occurs. Also, the election

will only be permitted if the plans and specifications and contracts for the

repair work are approved by Seller, which approval Seller shall not

unreasonably withhold or delay. If such a permitted election is made by

Purchaser, Seller and Purchaser shall jointly deposit, when paid, such

insurance proceeds into such escrow. If such insurance proceeds are

insufficient for the repair work, Purchaser shall, before the commencement

of the repair work, deposit into such escrow sufficient additional money to

insure the full payment for the repair work. Purchaser shall at all times be

responsible to pay the full cost of the repair work. All escrowed funds shall

be disbursed by the escrowee in accordance with generally accepted sound

construction disbursement procedures. The costs incurred or to be incurred

on account of such escrow shall be deposited by Purchaser into such escrow

before the commencement of the repair work. Purchaser shall complete the

repair work as soon as reasonably possible and in a good workmanlike

manner, and in any event the repair work shall be completed by Purchaser

Form No. 2004-001-SES—CONTRACT FOR DEED

Individual Seller Minnesota Uniform Conveyancing Blanks (2004)

Contract for Deed - Page 3 of 5

within on year after the damage occurs. If, following the completion of and

payment for the repair work, there remain any undisbursed escrow funds,

such funds shall be applied to payment of the amounts payable by

Purchaser under this contract in accordance with paragraph 8(a) above.

9. INJURY OF DAMAGE OCCURRING ON THE PROPERTY.

(a) LIABILITY. Seller shall be free from liability and claims for damages by

reason of injuries occurring on or after the date of this contract to any

person or person or property while on or about the Property. Purchasers

shall defend and indemnify Seller from all liability, loss, costs, and

obligations, including reasonable attorneys’ fees, on account of or arising out

of any such injuries. However, Purchasers shall have no liability or

obligation to Seller for such injuries which are cause by the negligence or

intentional wrongful acts or omissions of Seller.

(b) LIABILTIY INSURANCE. Purchasers shall, at their own expense, procure and

maintain liability insurance against claims for bodily injury, death and

property damage occurring on or about the Property in amounts reasonably

satisfactory to Seller and naming Seller as an additional insured.

10. INSURANCE, GENERALLY. The insurance which Purchasers are required to

procure and maintain pursuant to paragraphs 7 and 9 of this contact shall be

issued by an insurance company or companies licensed to do business in the State

of Minnesota and acceptable to Seller. The insurance shall be maintained by

Purchasers at all times while any amount remains unpaid under this contract. The

insurance policies shall provide for not less than ten days written notice to Seller

before cancellation, non-renewal, termination or change in coverage, and

Purchasers shall deliver to Seller a duplicate original or certificate of such insurance

policy or policies.

11. CONDEMNATION. If all or any part of the Property is taken in condemnation

proceedings instituted under power of eminent domain or is conveyed in lieu thereof

under threat of condemnation, the money paid pursuant to such condemnation or

conveyance in lieu thereof shall be applied to payment of the amounts payable by

Purchasers under this contract, even if such amounts are not then due to be paid.

Such amounts shall be applied fist to unpaid accrued interest and next to the

installments to be paid as provided in this contract in the inverse order of their

maturity. Such payments shall not postpone the due date of the installments to be

paid pursuant to this contract or change the amount of such installments. The

balance, if any, shall be the property of Purchasers.

12. WASTE, REPAIR AND LIENS. Purchasers shall not remove or demolish any

buildings, improvements or fixtures now or later located on or a part of the Property,

nor shall Purchasers commit or allow waste of the Property. Purchasers shall

maintain the Property in good condition and repair. Purchasers shall not create or

permit to accrue liens or adverse claims against the Property which constitute a lien

or claim against Seller’s interest in the Property. Purchasers shall pay to Seller all

amounts, costs and expenses, including reasonable attorney’s fees, incurred by

Seller to remove any such liens or adverse claims.

13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchasers full

performance of this contract, pay the deed tax due upon the recording or filing of

the deed to be delivered by Seller to Purchasers. The mortgage registry tax due upon

the recording or filing of this contract shall be paid by the party who records or files

this contract; however, this provision shall not impair the right of Seller to collect

form Purchasers the amount of such tax actually paid by Seller as provided in the

applicable law governing default and service of notice of termination of this contract.

14. NOTICE OF ASSIGNMENT. This agreement is not assignable by party.

15. PROTECTION OF INTERESTS. If Purchasers fail to pay any sum of money required

under the terms of this contract or fail to perform any of their obligations as set

forth in this contract, Seller may, at Seller’s option, pay the same or cause the same

to be performed, or both, and the amounts so paid by Seller and the cost of such

performance shall be payable at once, with interest at the rate stated in paragraph 4

of this contract, as an additional amount due Seller under this contract.

If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any

mortgage, contract for deed, lien or encumbrance against the Property which is not

herein expressly assumed by Purchasers, and provided Purchasers are not in

default under this contract, Seller shall timely pay all amounts due thereon, and if

Seller fails to do so, Purchasers may, at their option, pay any such delinquent

amounts and deduct the amounts paid from the installment(s) next coming due

under this contract.

16. DEFAULT. The time of performance by Purchasers of the terms of this contract is an

essential part of this contract. Should Purchasers fail to timely perform any of the

terms of this contract, Seller may, at Seller’s option, elect to declare this contract

cancelled and terminated by notice to Purchasers in accordance with applicable law.

The contract shall then be void and canceled. All right, title and interest acquired

under this contract by Purchasers shall then cease and terminate, and all

improvements made upon the Property and all payments made by Purchasers

pursuant to this contract shall belong to Seller as liquidated damages for breach of

Form No. 2004-001-SES—CONTRACT FOR DEED

Individual Seller Minnesota Uniform Conveyancing Blanks (2004)

Contract for Deed - Page 4 of 5

this contract. Neither the extension of the time for payment of any sum of money to

be paid hereunder nor any waiver by Seller of Seller’s rights to declare this contract

forfeited by reason of any breach shall in any manner affect Seller’s right to cancel

this contract because of defaults subsequently occurring, and no extension of time

shall be valid unless agreed to in writing. After service of notice of default and

failure to cure such default within the period allowed by law, Purchasers shall, upon

demand, surrender possession of the Property to Seller.

17. BINDING EFFECT. The terms of this contract shall run with the land and bind the

parties hereto and their successors in interest.

18. HEADINGS. Headings of the paragraphs of this contract are for convenience only

and do not define, limit, or construe the contents of such paragraphs.

19. ASSIGNMENT BY OWNER’S ASSOCIATION. If the Property is subject to a recorded

declaration providing for assessments to be levied against the Property by any

owners’ association, which assessments may become a lien against the Property if

not paid, then:

(a) Purchasers shall promptly pay, when due, all assessments imposed by the

owners’ association or other governing body as required by the provisions of

the declaration or other related documents;

and

(b) So long as the owners’ association maintains a master or blanket policy of

insurance against fire, extended coverage perils and such other hazards and

in such amounts as are require by this contract, then:

(i) Purchasers’ obligation in this contract to maintain hazard insurance

coverage on the Property is satisfied; and

(ii) The provisions in Paragraph 8 of this contract regarding application

of insurance proceeds shall be superseded by the provisions of the

declaration or other related documents; and

(iii) In the event of a distribution of insurance proceeds in lieu of

restoration or repair following an insured casualty loss to the

Property, any such proceeds payable to Purchasers are hereby

assigned and shall be paid to Seller for application to the sum

secured by this contract, with the excess, if any, paid to Purchasers.

20. ADDITIONAL TERMS: Purchaser shall open a joint bank account where payment

shall be made by the 5

of each month. The Seller will then auto draft the payment

from that account. In the event that Purchaser fails to deposit an amount equal to

the monthly payment in said account by the 10th of any month when due,

Purchaser shall incur and pay a late fee of $126.98 in addition to the payment due.

Seller shall disclose to Purchaser, in writing, the name, address and mortgage loan

numbers of all mortgagees on the property. Further, Seller shall provide to

Purchaser at closing written authorization to release information directed to each

such mortgagee, to allow Purchaser to periodically verify the payment status of any

such mortgage.

Form No. 2004-001-SES—CONTRACT FOR DEED

Individual Seller Minnesota Uniform Conveyancing Blanks (2004)

Contract for Deed - Page 5 of 5

SELLER(S)

PURCHASERS

___________________________________________ ___________________________________________

Two Forty Street Lehner Trust

Marc T. Hoffmann as Trustee

State of Minnesota

County of _________________________________

}ss.

The forgoing instrument was acknowledged before me this ____ day of ______________,

__________, by Two Forty Street Lehner Trust, Marc T. Hoffmann as Trustee

__________________________________________________

SIGNATURE OF NOTARY PUBLICH OR OTHER OFFICIAL

State of Minnesota

County of _________________________________

}ss.

The forgoing instrument was acknowledged before me this ____ day of ______________,

__________, by

__________________________________________________

SIGNATURE OF NOTARY PUBLICH OR OTHER OFFICIAL

FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES

PRIORTIY OVER PRUCHASERS’ INTEREST IN THE PROPERTY.

Tax Statements for the real property described in this

THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS) :instrument should be sent to (include name and

Lakes Area Home Buyers, Inc. address of Grantee):

P.O. Box 8043

St. Paul , MN 55108

Lakes Area Home Buyers, Inc

P.O. Box 8043

St. Paul , MN 55108