Fillable Printable Sample Contract for Deed

Sample Contract for Deed

Appendix B Sample Contract for Deed

This Agreement, made this________________day of _________________________,

between____________________________________________________________ , called Seller,

whose address is [NUMBER AND STREET] [CITY] [STATE] [ZIP] , and

____________________________ , call ed Buyer, whose address is [NUMBER AND STREET]

[CITY] [STATE] [ZIP] , concerns the real property in the City

of________________________, County of_____________________ [STATE], called Property and

described as:

[INSERT PROPERTY DESCRIPTION HERE]

1. Buyer agrees to purchase the Property for the Price of $___________________.

2. The Down Payment on the Price is $_____________________.

3. The Balance of the purchase Price is $___________________.

4. The Term of this sale is [NUMBER OF MONTHS OF CONTRACT.]

5. The Balance bears Interest from date of this Agreement on the unpaid Balance at the annual

rate of [INSERT PERCENT AMOUNT].

6. The Buyer will pay the Balance and Interest to the Seller in equal Monthly Payments of

$[USE A MORTGAGE CALCULATOR TO INSERT THE CORRECT MONTHLY

PAYMENT]

7. Monthly Payments will begin on [INSERT DATE] and continue until [INSERT DATE].

8. Legal Ownership

Buyer retains legal title of the Property for the following purposes: (a) securing paym ent of

the Monthly Payments; (b) securing payment of the Balance and Interest; and (c) ensuring

the performance of each provision of this agreement.

9. Condition of Property

Buyer Promises to keep Property in good condition and repair; not to remove or demolish

any building; to complete and restore any building which may be constructed, dam aged or

destroyed; to comply with all laws affecting the property or requiring any alterations or

improvements to be made; not to commit or permit waste; to cultivate, irrigate, fertilize,

fumigate, prune and do all other acts which from the char ac ter or use of the property may

be reasonably necessary.

10. Taxes

Buyer promises to pay all taxes and assessments affecting the property, including water stock

assessments, at least 10 days before delinquency; all encumbrances, charges and liens, with

interest, on the property when due, which are not the responsibility of the Seller and are or

appear to be senior to this agreement; and all expenses of this Agreement.

11. Buyer's Failure to Pay - Seller's Rights

If Buyer fails to make any Monthly Payment or to perform any act provided for in this

agreement, then Seller may, at the option of the Seller and without notice, and without

releasing Buyer from any obligation under this agreement:

a. Make any payment necessary to protect the Sell er's interest or rights in the

Property, and do any work necessary to protect the Seller's interest or rights in the

Property, Seller being authorized to enter upon the property to do so;

b. Appear in or commence any action or proceeding purporting to affect the

Property, the Seller's interest or rights in the Property;

c. Pay, purchase, contest or settle any encumbrance, charge or lien that appears

to be senior to this Agreement.

d. In exercising the power of this provision, Seller may incur necessary

expenses and reasonable attorney fees. Buyer to pay immediately all sums expended

by Seller provided for in this agreement, with interest from date of expenditure at the

same rate as the principal debt hereby secured.

12. Assignment of Damages

Buyer assigns to Seller any award of damages made in connection with:

a. Condemnation for use of or injury to the property by the public, or

conveyance in lieu of condemnation; or

b. Injury to the property by any third party.

13. Waiver by Seller

By accepting payment of any amount due after its due date, Seller does not waive Seller's

right to either require prompt payment when due of all other sums or to declare default for

failure to pay. Seller may waive a default of any provision of this agreement, by consent or

acquiescence, without waiving any prior or subsequent default.

14. Conveyance of Title

Seller will convey title in fee simple and free of creditor' s liens, subject to existing CC&Rs,

and limitations in the deed, if any, to Buyer upon Buyer's payment of all amounts due to

Seller under this agreement. Seller will convey title only by a General Warranty or Grant

Deed containing the following covenants:

a. the Property has not been sold, promised to, or conveyed to any other person

or entity;

b. the Property does not have any mortgages, liens, or other encumbrances that

have not already been disclosed to Buyer; and (if a General Warranty deed

is used)

c. the Seller will warrant and defend ownership of the Property against any other

claim of ownership.

15. Title Insurance

On conveyance of title from Seller to Buyer on full performance of this agreement by buyer,

the interest of Seller and Buyer in the property will be insured by a title insurance policy

issued by [INSERT NAME OF TITLE INSURANCE COMPANY], premium to be paid by

Seller, or Buyer. On Buyer's deposit into escrow of all sums and instruments due to Seller

under this agreement and payment of all customary escrow costs and charges, Seller to

deposit into the escrow all instruments and instructions necessary to convey title and fully

perform this agreement.

16. Buyer's Resale

Should Buyer sell, transfer or convey any interest in the property, legal or equitable, either

voluntarily or by operation of law, Seller may, at Seller's option, declare all sums secured

by this agreement immediately due and payable.

17. Rents and Royalties

Buyer hereby assigns and transfers to Seller all the rights, title and interest in rents or

royalties generated by the Property, including rents now due, past due or to become due

under any use of the Property.

18. Acceleration

If a Monthly Payment or performance of this Agreement is in default, then Seller may at

Seller's option, without notice, declare all sums secured immediately due and payable by

commencing a breach of contract lawsuit for their recovery or delivering to Buyer a written

notice declaring default with demand for sale and then recording such together with an

election to sell. The Buyer requests a copy of any Notice of Default and of any Notice of

Sale to be mailed to Buyer's address described above.

19. Power of Sale

On default under any obligation of this Agreement and acceleration of all sum s due, Seller

may elect to proceed with a power of sale and to offer up for sale the Property or the

Agreement.

20. Prepayment Penalty

The Buyer may pay the Balance owed to the Seller, minus the amount paid down on the

Balance by the Buyer's Monthly Payments, at anytime and without penalty of any kind.

21. Successors and Assigns - Limitation on Subsequent Sale by Seller

This agreement is for the benefit of, and binds only the Buyer and Seller, their heirs,

legatees, devisees, administrators, executors, and successors. Seller promises not sell,

pledge, or assign any interest or right in the Property without the written consent of the

Buyer.

Seller promises not to obtain or place any loan, lien, or encumbrance on the Property for the

Term of the Agreement. Seller promises there are no loans, liens, or encumbrances currently

on the Property, nor are any expected to attach to the property during the Term of the

Agreement due to the Seller's action or omission, including taxes. Seller promises that all of

the Property's rights are held only by the Seller, except those described in the Property's

deed.

22. Attorney Fees

In any action to enforce this agreement, the prevailing party shall receive attorney fees and

costs.

23. Jurisdiction

Any lawsuit [OR ARBITRATION IN ACCORDANCE WITH THE AAA] regarding this

Agreement filed by either the Buyer or Seller must be filed in [THE LOCATION YOU

AGREE ON].

24. Warranties

SELLER MAKES NO WARRANTY, EXPRESS OR IMPLIED, EXCEPT AS EXPRESSLY

DESCRIBED IN THIS AGREEMENT AND SELLER EXPRESSLY DISCLAIMS ANY IMPLIED

WARRANTY OF MERCHANTABILITY, HABITABILITY, OR FITNESS FOR A PARTICULAR

PURPOSE.

THE PROPERTY IS BEING SOLD "AS IS" AND WITH THE UNDERSTANDING THAT THE

BUYER HAS PERFORMED ALL INVESTIGATION AND DUE DILIGENCE INTO THE

PROPERTY THAT THEY NEEDED IN ORDER TO DECIDE ON THE PURCHASE AND

BEFORE ENTERING THIS AGREEMENT.

BY ENTERING INTO THIS AGREEMENT, BUYER AGREES THAT THEY HAVE

INVESTIGATED THE FOLLOWING ISSUES WHICH MAY APPLY TO THE PROPERTY:

A) TERRAIN OF THE PROPERTY

B) SIZE OF THE PROPERTY

C) VEGETATION OF THE PROPERTY

D) THE PROPERTY'S ZONING

E) ROADS TO OR ON THE PROPERTY

F) AVAILABILITY OF ELECTRICITY

G) AVAILABILITY OF SEWER/TRASH

H) AVAILABILITY OF WATER

I) AVAILABILITY OF PHONE SERVICE

J) PROPERTY TAX

K) ASSOCIATION FEES ON THE DEED

L) BUILDING RESTRICTIONS ON THE DEED

M) ONGOING MINING OR GRAZING

25. Insurance

For the Term of the Agreement, Buyer shall maintain liability insurance covering the

Property in the amount of one million dollars ($1,000,000) and name the Seller as an insured

under the policy.

26. Conversion of the Agreement

After [INSERT NUMBER OF ON TIME PAYMENTS] months, if Buyer has made every

Monthly Payment as described in this Agreement, Seller will issue Buyer a deed according

to paragraph 14, Conveyance of Title,”and place a mortgage on the Property in an amount

equal to the Balance owed to the Seller, minus the am ount paid down on the Balance by the

Buyer's Monthly Payments. The Property will remain security for the Seller’s mortgage.

Signature of Buyer_______________________________________

Date of Signature________________________________________

Signature of Seller_______________________________________

Date of Signature________________________________________

STATE OF [INSERT STATE]

COUNTY OF___________________________

On _____________________before me, ______________________________ personally

appeared, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)

is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the

same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument

the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of [INSERT] that the

foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________________________

(Signature of notary public)