DIY Legal Forms

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Contract For Installment Sale Of Realty

1. Parties. Agreement between [name], residing at [address] (Seller), and [name], residing at [address] (Buyer), dated [date].

2. Description of Property. The property to be sold is [legal description of property], also known as [street, city, state], together with all improvements on it (Property).

3. Sale-Purchase Agreement. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property in accordance with the terms of this Agreement.

4. Terms of Sale.

(a) Payment. Buyer agrees to pay Seller the sum of ........ dollars ($........) according to the following payment schedule:

(i) ........ dollars ($........) as a down payment, receipt of which is acknowledged, and

(ii) the balance of ........ dollars ($........) to be paid in [number] monthly installments of ........ dollars ($........) each, with interest at the rate of ........ percent (........%) per year. The first of such payments will begin on [date] and continue until fully paid. They are to be applied first against interest and then against principal until the total amount is paid in full. Payments are to be made directly to Seller at the address stated in this Agreement, or at any other place that Seller later designates in writing.

(b) Prepayment. Buyer may prepay any portion of the principal, in a sum not less than ........ dollars ($........), on any payment date, without notice.

5. Title.

(a) Warranty. Seller warrants he owns the Property.

(b) Nature of Title. Seller will give and Buyer will accept such title as [title insurance company] will approve and insure, subject to no liens or other encumbrances (except as enumerated in this Agreement).

(c) Expense of Title Searchers, Etc. Buyer will pay for all title searches and title insurance policies in connection with this Agreement.

6. Deed. When the final installment is paid by Buyer, in accordance with Paragraph 4 of this Agreement, Seller will convey the Property to Buyer by warranty deed, conveying marketable title free and clear of all encumbrances.

7. Delivery of Possession. Simultaneously with the execution of this Agreement, Seller will deliver possession of the premises to Buyer.

8. Condition of Premises. Buyer has examined the Property (including all improvements thereon), knows the condition of the Property, and accepts it "as is."

9. Alterations of the Property. Buyer may make any alterations in the Property, except for structural changes, without written permission from Seller. Buyer will indemnify Seller against any liability arising from such alterations. Buyer may make structural alterations to the Property only after obtaining Seller's written consent.

10. Taxes. Seller is responsible for all taxes and assessments against the premises up to and including [year]. Taxes for the current year, [year], are to be prorated between Buyer and Seller, as of the date of this Agreement. Subsequent taxes and assessments are to be paid, when due, by Buyer. If Buyer fails to make such payment, Seller has the right to pay such taxes and assessments and add the amount paid to the principal balance of Buyer's unpaid purchase price.

11. Insurance. During the term of this Agreement, Buyer will keep the Property insured to the extent of its full insurable value. Such insurance must cover fire, windstorm, public liability, and extended coverage. All policies must provide that payment, in the event of loss, will be made to Seller and Buyer as their interests may appear. Seller must be given a copy of all policies or other evidence that they are in force and effect, during the term of this Agreement.

12. Loss by Fire or Other Disaster. If more than ........ percent (........%) of the total value of the Property is destroyed or damaged by fire or other disaster, Seller has no obligation to rebuild or restore the Property, but will apply the proceeds of insurance to the balance owed under this Agreement. However, if less than ........ percent (........%) of the total value of the Property is damaged or destroyed, Buyer is entitled to rebuild the Property out of the insurance proceeds.

13. Risk of Loss. The provisions of the Uniform Vendor and Purchaser Risk Act of [state] shall apply to this Agreement.

14. Seller's Options on Default.

(a) Forfeiture. If Buyer fails to make any installment payment or perform any of Buyer's covenants contained in this Agreement, Seller may declare this Agreement forfeited. In such event, Buyer will forfeit all payments made under this Agreement, and these payments will be retained by Seller, in full satisfaction and as liquidated damages; Seller will also have the right to reenter and retake the premises.

(b) Declaring Agreement Null and Void. Upon default by Buyer, Seller may declare this Agreement null and void, by filing a written declaration of forfeiture in the Recorders Office of [county].

(c) Ownership of Improvements. Should this Agreement be terminated by forfeiture, lapse of time, or other events, all improvements on or to the Property made by Buyer shall become the absolute property of Seller.

d. Other Remedies. Seller shall have every other remedy, given by this Agreement and by law or equity, in case of default or breach of this Agreement by Buyer. Seller may prosecute any such remedy contemporaneously with Seller's right of forfeiture or any other remedy contained in this Agreement.

15. Time of the Essence. Time of payment is of the essence in this Contract.

16. Heirs and Assigns. All covenants and undertakings in this Agreement shall extend to and be binding upon the heirs, executors, administrators, and assigns of the respective parties.

Signature

Seller

Signature

Buyer

This Section for Notary:

Acknowledgment

STATE OF -------)

) ss: [date]

COUNTY OF ------)

On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or 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.

Witness my hand and official seal.

[signature]

[Name of Notary Public]

My commission expires: [date]

(Seal)