Land Contract Form

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SAMPLE LAND CONTRACT FORM

This Contract, made this ______ day of _____________, 20__, between ____________________ hereinafter referred to as "Seller", whose address is ______________________________ and ___________________ hereinafter referred to as "Purchaser", whose address is _________________________________

2. Seller agrees to the following:

a). Description of Premises

To sell and convey to Purchaser land in [ City ], [ County ], [ State ], described as:

Commonly known as:

hereinafter referred to as "the land", together with all tenements, hereditaments, improvements, and appurtenances, including any lighting and plumbing fixtures, shades, 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.

b) Terms of Payment

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 __________, 20__; 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.

c) Seller’s Duty to Convey

To execute and deliver to Purchaser or his assigns, upon 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.

d) To Furnish Title

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 by . 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.

3. Purchaser agrees to the following:

a) Purchaser’s Duties

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

(2) To use, maintain and occupy the land in accordance with any and all building and use restrictions applicable thereto.

(3) To keep the land in accordance with all police, sanitary or other regulations imposed by any governmental authority.

(4) 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.

b) Pay Taxes and Insure Premises

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.

c) Acceptance of Title and Premises

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.

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.

4. Seller and Purchaser mutually agree to the following:

a) Mortgage by Seller

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 affected 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.

b) Encumbrances on Seller’s Title

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.

c) Non-payment of Insurance or Taxes

That if default is made by Purchaser in the payment of any tax or special assessment 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 3(b) applies.

d) Insurance Proceeds

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.

e) Assignment by Purchaser

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.

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.

g) Right to Forfeit

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.

h) Acceleration Clause/Time is of the Essence

That if proceedings are taken to enforce this contract by equitable action, after Purchaser shall have been in default for a period of ____ days or more, the entire amount owing hereon shall be due and payable forthwith, anything herein contained to the contrary notwithstanding. Time shall be deemed to be of the essence of this contract.

i) Notice to Purchaser

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.

j) Parties’ Capacity

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.

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

STATE OF ___________________________

COUNTY OF __________________________

On this ____ day of ___________ in the year 20__, before me, the undersigned, a notary public in and for the State of ______________, personally appeared _______________, personally known to me or proved to me on the basis of satisfatory evidence to be the individual(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 capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of which the individual(s) acted, executed the instrument.

Signature of Notary Public

My commission expires:

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This form has been prepared for general informational purposes only. It does not constitute legal advice, advertising, a solicitation, or tax advice. Transmission of this form and the information contained herein is not intended to create, and receipt thereof does not constitute formation of, an attorney-client relationship. You should not rely upon this document or information for any purpose without seeking legal advice from an appropriately licensed attorney, including without limitation to review and provide advice on the terms of this form, the appropriate approvals required in connection with the transactions contemplated by this form, and any securities law and other legal issues contemplated by this form or the transactions contemplated by this form.