CONTRACT FOR DEED / LAND CONTRACT
Table of Contents
SECTION 1. CONTRACT FOR DEED AND PARTIES
SECTION 2. PURCHASE AND SALE OF PROPERTY
SECTION 3. PURCHASE PRICE
SECTION 4. REAL ESTATE TAXES
SECTION 5. INSURANCE COVERAGE
SECTION 6. DEFAULT
SECTION 7. RIGHT TO REINSTATE AGREEMENT
SECTION 8. ASSIGNMENT OR SALE OF THE PREMISES
SECTION 9. DEED AND EVIDENCE OF TITLE
SECTION 10. DISCLOSURE REQUIREMENTS
SECTION 11. NOTICES
SECTION 12. CONVEYANCE OR MORTGAGE
SECTION 13. OTHER PROVISIONS
SECTION 1. CONTRACT FOR DEED AND PARTIES
THIS CONTRACT FOR DEED (this "Agreement"), dated as of the effective date, ____ day of ___________, 20___
_________, with a permanent address at _________
(the "Seller")
_________, with a permanent address at _________
(the "Buyer")
FOR AND IN CONSIDERATION of the covenants and agreements set forth in this Agreement, and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto mutually agree as follows:
SECTION 2. PURCHASE AND SALE OF PROPERTY
1. On the ____ day of ___________, 20___, the Seller agrees to sell, convey and grant to the Buyer all of the following lands and property, including all the improvements located on the property for and in consideration of the sum of $_________. The legal description of the property is described in the attachment (the "Premises").
SECTION 3. PURCHASE PRICE
2. As a condition to the Seller's performance hereunder and the prorations hereafter described, the Buyer shall pay to the Seller the price (the "Purchase Price") of $_________. The Buyer agrees to pay the Purchase Price in monthly installments of $_________, and they are due on the _________ of every month, starting on _________ and ending when the Purchase Price is fully paid.
Interest Charges
3. A monthly interest rate of _________% shall be applied, calculated on an annual basis. The interest will be deducted from the monthly payments. The remaining portion of each monthly payment will be applied towards reducing the outstanding principal amount of the Purchase Price.
SECTION 4. REAL ESTATE TAXES
4. All Real Estate taxes and assessments levied or assessed against the property shall be the responsibility of the Buyer.
SECTION 5. INSURANCE COVERAGE
5. The Buyer acknowledges that the Seller shall not be liable for procuring insurance coverage to protect against damage or loss of the Buyer's property. The Seller expressly disclaims any responsibility for such damage or loss. Additionally, the Buyer is hereby informed that if insurance coverage is desired, it is the Buyer's responsibility to consult with their insurance agent to explore obtaining a personal contents policy of insurance.
6. The Buyer is informed and acknowledges that the Seller does not insure the property for damage or loss to the structure, mechanical systems, or any improvements on such property, and the Seller bears no responsibility for any such damage or loss. It is strongly advised that the Buyer obtains insurance coverage as required by the Seller. The Buyer should promptly consult with their insurance agent to secure a policy of insurance for the property, and must furnish a copy of the policy to the Seller upon its issuance. Non-compliance with the insurance requirement is considered a breach of this Agreement and may lead to termination of the Agreement.
7. The Buyer shall maintain liability insurance coverage for the property, protecting both the Buyer and the Seller. The Buyer hereby assumes liability for any damage or loss resulting from the liability of either the Buyer or the Seller.
8. The Buyer bears no responsibility for obtaining insurance coverage to protect the Seller's contents and furnishings present in the property, covering either damage or loss. The Buyer expressly disclaims any liability for such damage or loss.
9. If any insurance is required of the Buyer as stipulated in this contract, the proof of insurance shall be provided to the Seller within two weeks of its renewal.
10. If the Buyer fails to perform any covenant or condition contained in this Agreement, the Seller will notify the Buyer of such default. The notice will give the Buyer 14 days from the date the notice is received to cure or rectify the default. If the Buyer does not remedy or rectify the default within such notice period of 14 days, then the balance of the Purchase Price, including interest payable, will become due immediately following the period of 14 days to remedy or rectify the default (the "Notice Period"). This Agreement shall be terminated at the end of the Notice Period if the Buyer Fails to pay the full amount of the Purchase Price owed.
11. If the Buyer fails to rectify a default situation, resulting in the termination of this Agreement, the Parties agree that the Buyer shall vacate the Premises within 14 days following the termination of this Agreement. The Parties further agree that the Buyer's to vacate within that period gives the Seller a right to maintain an action to obtain vacant possession of the Premises.
12. If a default arises, resulting in the termination of this Agreement initiated by the Buyer, then such Buyer shall forfeit all payments made under the terms of this Agreement, including, but not limited to, payments towards the Purchase Price, as well as any taxes, assessments, or insurance premiums paid by the Buyer. These forfeited amounts shall be considered liquidated damages for the breach of this Agreement.
13. The Seller retains the right to seek damages arising from the intentional acts or negligence of the Buyer.
SECTION 7. RIGHT TO REINSTATE AGREEMENT
14. The Seller shall have the option to reinstate this Agreement if a default arises on the Buyer's part and this Agreement is terminated. If the Seller exercises this discretion, the Buyer may be required to:
a. Settle all amounts due and owing under this Agreement as if the Agreement had not been terminated.
b. Remedy any defaults that have occurred.
c. Reimburse the Seller for all expenses incurred in enforcing their rights under this Agreement.
15. All payments made in accordance with the aforementioned provision must be rendered in a form mutually acceptable to both parties.
SECTION 8. ASSIGNMENT OR SALE OF THE PREMISES
16. The Buyer shall only sell, assign, transfer, convey, encumber, or deal with any interest in the Premises with the Seller's written consent.
SECTION 9. DEED AND EVIDENCE OF TITLE
17. The Seller shall provide the Buyer with a Warranty Deed for the Premises following complete payment of the full Purchase Price by the Buyer, which shall cover all taxes, assessments, interest, and other charges owed to the Seller. This Warranty Deed shall be delivered within a reasonable timeframe and shall convey clear and unencumbered ownership of the Premises, devoid of any liens or encumbrances.
SECTION 10. DISCLOSURE REQUIREMENTS
18. The Parties shall disclose or make all disclosures required by law.
19. All notices required to be issued under this Agreement shall be sent via pre-paid registered mail to the following address:
If to the Buyer:
The Buyer, _________, with a permanent address at: _________
If to the Seller:
The Seller, _________, with a permanent address at: _________
SECTION 12. CONVEYANCE OR MORTGAGE
20. The Seller reserves the right to the encumbrance of the Premises and their interest in the Premises, while still subject to the terms of this Agreement. Such transfer shall not result in the termination of this Agreement.
21. This Agreement will serve as security for the fulfillment of all obligations by the Buyer as outlined in this Agreement.
SECTION 13. OTHER PROVISIONS
Time of the Essence
22. Time is of the essence in fulfilling all obligations of the Buyer under this Agreement.
Attorney Fees
23. If the Buyer defaults, then the Buyer shall be responsible for reimbursing the Seller for all reasonable and actual attorney fees incurred in enforcing the Seller's rights under this Agreement. The default shall not be considered rectified until all attorney fees have been settled.
Entire Agreement
24. This Agreement constitutes the entire understanding between the Buyer and the Seller. Any prior understandings or representations prior to the date of this Agreement shall not be binding on either party, except to the extent incorporated into this Agreement.
Amendments
25. Any modifications or amendments to this Agreement or additional obligations undertaken by either party concerning this Agreement shall only be enforceable if evidenced in writing and signed by each party or an authorized representative of each party.
Waivers
26. Any waiver of rights by any party regarding this Agreement shall be binding only if it is evidenced in writing and signed by each party or an authorized representative of each party.
27. If there is a conflict involving any provision of this Agreement and the relevant legislation of the State of Alabama (referred to as the "Act"), the Act shall take precedence, and the provisions of this Agreement shall be modified or removed as required to align with the Act. Additionally, any provisions mandated by the Act shall be deemed integrated into this Agreement.
28. Should any provision of this Agreement be deemed invalid or unenforceable in part or in full, the enforceable portions of such provisions, as well as all other provisions within this Agreement, shall remain valid and enforceable. These valid and enforceable provisions shall operate as though the excluded or unenforceable segments were never part of this Agreement. The remaining provisions shall be regarded as mutually executed by both parties following the removal of the invalidated provision.
Heirs and Assigns
29. This Agreement shall apply to, be binding upon, and confer benefits upon the respective heirs, executors, administrators, successors, and assigns of each party to this Agreement, as applicable. All covenants shall be interpreted as integral components of this Agreement.
IN WITNESS WHEREOF, the Seller and Buyer have duly affixed their signatures under hand and seal on this ____ day of ___________, 20___.
______________________________ | |
(Signature of Witness) | ______________________________ |
______________________________ | _________ |
(Print Name) | |
______________________________ | |
(Signature of Witness) | ______________________________ |
______________________________ | _________ |
(Print Name) | |
State of Alabama
COUNTY OF ___________________
I ____________________________, a Notary Public in and for said County and State, hereby certify that _________, whose name(s) is signed to the foregoing instrument, and who is known to me, acknowledged before me on this day that, being informed of the contents of the instrument, he/she/they executed the same voluntarily on the day the same bears date. Given under my hand this ________ day of ________________, ________.
__________________________(Notary Public Signature)
Notary Public
My commission expires: __________________________
State of Alabama
COUNTY OF ___________________
I ____________________________, a Notary Public in and for said County and State, hereby certify that _________, whose name(s) is signed to the foregoing instrument, and who is known to me, acknowledged before me on this day that, being informed of the contents of the instrument, he/she/they executed the same voluntarily on the day the same bears date. Given under my hand this ________ day of ________________, ________.
__________________________(Notary Public Signature)
Notary Public
My commission expires: __________________________
DRAFTED by: _________ of _________ | RETURN to: ____________________________ |