Fillable Printable Form of Land Contract

Form of Land Contract

FORM OF LAND CONTRACT

Parties

This Contract, made this

day of , 19 , between

hereinafter referred to as "Seller", whose address is and

hereinafter referred to as "Purchaser", whose address is

Witnesseth:

Description

of Premises

1. Seller Agrees:

(a) To sell and convey to Purchaser land in the

of , County of

, Michigan, described as:

TAX I.D. #

Commonly known as:

hereinafter referred to as "the land", together with all tenements, hereditaments, improvements, and

appurtenances, including any lighting and plumbing fixtures, shades, Venetian blinds, curtain rods, storm

windows, storm doors, screens, awnings, TV antenna, now on the land, subject to any applicable

building and use restrictions and to any easements affecting the land.

Terms of

Payment

(b) That the full consideration for the sale of the land to Purchaser is:

($ ) dollars, of which the sum of ($ ) dollars has been paid to Seller prior

to the delivery hereof, the receipt of which is hereby acknowledged, and the additional sum of

($ ) dollars, is to be paid to Seller, with

interest on any part thereof at any time unpaid at the rate of

per cent per annum while

Purchaser is not in default, and at the rate of

per cent per annum, computed upon the

balance of the purchase price then unpaid, during the period of any default in payment. Such additional

purchase money and interest is to be paid in monthly installments of ($

) dollars each, or more

at Purchaser's option, on the

day of each month, beginning , 19 ; such payments

to be applied first upon interest and the balance on principal. All of the purchase money and interest

shall, however, be fully paid within

years from the date hereof, anything herein to the contrary

notwithstanding.

Seller's

Duty to

Convey

payment in full of all

sums owing hereon, less the amount then owing on any unpaid mortgage or mortgages, and the

surrender of the duplicate of this contract, a good and sufficient warranty deed conveying title to the land,

subject to abovementioned restrictions and easements and to any then unpaid mortgage or mortgages,

but free from all other encumbrances, except such as may be herein set forth or shall have accrued or

attached since the date hereof through the acts or omissions of persons other than Seller or his assigns.

To furnish

Title

Evidence

(d) To deliver to Purchaser as evidence of title, at Seller's option, either commitment for title insurance

followed by a policy pursuant thereto insuring Purchaser or abstract of title covering the land, furnished

{insert Title Company name}. The effective date of the policy or

certification date of the abstract is to be approximately the date of this contract. Seller shall have the

right to retain possession of such evidence of title during the life of this contract but upon demand shall

lend it to Purchaser upon the pledging of a reasonable security.

Purchaser's

Duties

2. Purchaser Agrees:

(a) To purchase the land and pay Seller the sum aforesaid, with interest thereon as above provided.

(b) To use, maintain and occupy the land in accordance with any and all building and use restrictions

applicable thereto.

governmental authority.

(d) To keep and maintain the land and the buildings in as good condition as they are at the date hereof

and not to commit waste, remove or demolish any improvements thereon, or otherwise diminish the

value of Seller's security, without the written consent of Seller.

To Pay Taxes

and keep

Premises

Insured

(e) To pay all taxes and special assessments hereafter levied on the land before any penalty for non-

payment attaches thereto, and submit receipts to Seller upon request, as evidence of payment thereof;

and also at all times to keep the buildings now or hereafter on the land insured against loss and damage,

in manner and to an amount approved by Seller, and to deliver the policies as issued to Seller with the

premiums fully paid.

Alternate

Payment

Method

If an amount representing estimated monthly costs of taxes, special assessments and insurance is

inserted in Paragraph 2(f), then the method of payment of these items therein indicated shall be adopted.

If such an amount is not inserted, then Paragraph 2(f) shall be of no effect and the method of payment

provided in Paragraph 2(e) shall apply.

Insert amount

if advance

monthly

installment

method of

tax and

insurance

payment is to

(f) To pay monthly in addition to the monthly payment hereinbefore stipulated, the sum of

($ ) dollars, which is an estimate of the monthly cost of taxes, special

assessments, and insurance premiums for the land, which shall be credited by Seller on the unpaid

principal balance owing on the contract. If Purchaser is not in default under the terms of this contract,

Seller shall pay for Purchaser's account the taxes, special assessments and insurance premiums

mentioned in Paragraph 2(e) above when due and before any penalty attaches, and submit receipts

therefor to Purchaser upon demand. The amounts so paid shall be added to the principal balance of this

contract. The amount of the estimated monthly payment, under this paragraph, may be adjusted from

be adopted time to time so that the amount received shall approximate the total sum required annually for taxes,

special assessments and insurance. This adjustment shall be made on demand of either of the parties

and any deficiencies shall be paid by Purchaser upon Seller's demand.

Acceptance of

Title and

Premises

(g) That he has examined a title insurance commitment/policy dated

an abstract of title

certified to covering the land, and is satisfied with the marketability of title shown thereby. Delivery of

such commitment or an owner's title policy issued pursuant to such commitment, or an abstract, to

Purchaser shall constitute fulfillment of Seller's agreement to furnish title evidence herein contained.

(h) That he has examined the land and is satisfied with the physical condition of any structure thereon,

and hereby waives any and all claims on account of any encroachments on the land or any premises

adjacent thereto.

Mortgage

by Seller

3. Seller and Purchase Mutually Agree:

(a) That Seller may at any time encumber the land by mortgage or mortgages to secure not more than

the balance owing hereon at the time such mortgage or mortgages are executed, which mortgage or

mortgages shall provide for payments of principal and/or interest not in excess of nor sooner than those

provided for in this contract, and shall be a first lien upon the land superior to the right of Purchaser

therein; provided notice of the execution of such mortgage or mortgages containing the name and

address of the mortgagee or his agent, the amount of such mortgage or mortgages and the rate of

interest and maturity of the principal and interest shall be sent to Purchaser by certified mail promptly

after execution thereof. Purchaser shall, on demand of the Seller, execute any instruments that may be

required for the exercise of the foregoing power. If Purchaser shall refuse to execute any such

instruments demanded by Seller or to accept such certified mail, or such certified mail shall be returned

unclaimed, then Seller may post such notice in two conspicuous places on the land, and make affidavit

of such facts and of such posting, after which Purchaser's rights shall be subordinated to such mortgage

or mortgages as hereinbefore provided. The consent obtained, or subordination effected as herein

provided, under or by virtue of the foregoing power, shall extend to any and all renewals, extensions or

amendments of such mortgage or mortgages after Seller has given notice thereof to Purchaser in like

manner as is herein provided for giving notice of the execution of such mortgage or mortgages, except

as to amendment which would increase the mortgage amount to one in excess of that owing hereon, or

provide for a rate of interest in excess of that provided or a maturity date sooner than provided herein.

Encumbrances

on Seller's

Title

(b) That if the title of Seller is evidenced by land contract or now or hereafter encumbered by mortgage,

Seller shall meet the payments of principal and interest thereon as they mature and produce evidence

thereof to Purchaser on demand. On Seller's default Purchaser may pay the same, which payments

shall be credited on the sums matured or first maturing hereon with interest at

% per annum on

payments so made. If proceedings are commenced to recover possession of the land or to enforce the

payment of such contract or mortgage, because of Seller's default, Purchaser may at any time thereafter

while such proceedings are pending encumber the land by mortgage securing such sums as can be

obtained upon such terms as may be required and with the proceeds pay and discharge such mortgage

or purchase money lien, and any mortgage so given shall be a first lien upon the land superior to the

rights of Seller therein. Thereafter Purchaser shall pay the principal and interest on such mortgage so

given as they mature, which payments shall be credited on the sums matured or first maturing hereon.

When the amount owing hereon is reduced to that owing upon such contract or mortgage or upon any

mortgage executed under either of the powers contained in this contract, a conveyance shall be made in

the form above provided with a covenant by the grantee to assume and pay the same.

Non-payment

of Taxes or

Insurance

premiums or in the delivery of insurance as above provided, Seller may pay such tax, special

assessments or premiums or procure such insurance and pay the premiums therefore, and any amount

so paid shall be a further lien on the land payable by Purchaser to Seller forthwith with interest at

% per annum. This provision shall be effective only if Paragraph 2(e) applies.

Disposition

of Insurance

Proceeds

(d) That during the existence of this contract, any proceeds received from a hazard insurance policy

covering the land shall first be used to repair the damage and restore the property, with the balance of

such proceeds, if any, being distributed to Seller and Purchaser, as their interests may appear.

Assignment

by Purchaser

(e) That no assignment or conveyance by Purchaser shall create any liability whatsoever against Seller

until a duplicate thereof duly witnessed and acknowledged, containing the residence address of the

assignee, shall be delivered either personally or by certified mail to Seller and receipt therefor obtained.

Purchaser's liability hereunder shall not be released or affected in any way by delivery of such

assignment, or by Seller's endorsement of receipt or acceptance thereon.

Possession

(f) That Purchaser shall have the right to possession of the land from and after the date hereof, unless

otherwise herein provided, and be entitled to retain possession thereof only so long as there is no default

on his part in carrying out the terms and conditions hereof. If the land is vacant or unimproved,

Purchaser shall be deemed to be in constructive possession only, which possessory right shall cease

and terminate after service of a notice of forfeiture of this contract. Erection of signs by Purchaser on

vacant or unimproved property shall not constitute actual possession by him.

Right

to Forfeit

(g) That should Purchaser fail to perform this contract or any part thereof, Seller immediately after such

default shall have the right to declare this contract forfeited and void, and retain whatever may have been

paid hereon, and all improvements that may have been made upon the land, together with additions and

accretions thereto, and consider and treat Purchaser as his tenant holding over without permission and

may take immediate possession of the land, and Purchaser and each and every other occupant remove

and put out. A proper notice of forfeiture, giving Purchaser at least fifteen (15) days to pay any moneys

required to be paid hereunder or to cure other material breaches of this contract, shall be served on

Purchaser, as provided by statute, prior to institution of any proceedings to recover possession of the

land.

Acceleration

Clause

(h) That if proceedings are taken to enforce this contract by equitable action, after Purchaser shall have

been in default for a period of forty-five (45) days or more, the entire amount owing hereon shall be due

and payable forthwith, anything herein contained to the contrary notwithstanding.

(i) That time shall be deemed to be of the essence of this contract.

Notice to

Purchaser

(j) That any declarations, notices or papers necessary or proper to terminate, accelerate or enforce this

contract shall be conclusively presumed to have been served upon Purchaser if such instrument was

enclosed in an envelope with first-class postage fully prepaid, addressed to Purchaser at the address set

forth in the heading of this contract or at the latest other address which may have been specified by

Purchaser and receipted for in writing by Seller, and such envelope was deposited in the United States

government mail.

Additional

Clauses

(k)

Dower

Rights

If the wife of Seller has dower rights in the land, she agrees by joining in the execution of this contract, to

join in executing the deed to be given in fulfillment hereof.

Capacity

of Parties

Any individual parties hereto represent themselves to be of full age. Any corporate parties hereto

present themselves to be existing corporations with their charters in full force and effect. Any

partnership parties hereto represent themselves to be existing partnerships with their certificates in full

force and effect.

Interpretation

of Contract

The pronouns and relative words herein used are written in the masculine and singular. If, however,

more than one person joins in the execution hereof as Seller or Purchaser, or either party be of the

feminine sex or a corporation, such words shall be read as if written in plural, feminine or neuter,

respectively. The covenants herein shall bind the heirs, devisees, legatees, successors and assigns of

the respective parties.

Signatures

Signed, sealed and delivered by the parties in duplicate the day and year first above written.

IN THE PRESENCE OF:

Individual

Acknowledgement

STATE OF MICHIGAN

COUNTY OF

The foregoing instrument was acknowledged before me this

day of , 19 by

Notary Public

County, Michigan

My commission expires:

Corporate

Acknowledgement

STATE OF MICHIGAN

COUNTY OF

The foregoing instrument was acknowledged before me this

day of , 19

(1) by

(2)

(3) of

(4) a Corporation on behalf of the said corporation.

Notary Public

County, Michigan

My commission expires:

Note:

Insert at (1) name(s) of officer(s); (2) title(s) of officer(s); (3) name of corporation; (4) state of

corporation

Instrument

Drafted by:

Business

Address: