Agreement for Deed

From Buyincomeproperties.com

Property Transfers
Agreement for Deed
By
Jul 5, 2005, 01:35

Sample of Agreement for Deed. This is for illustration purposes only. We are not licensed to practice law. An agreement for deed is another way of offering seller financing to a buyer. Under Florida law it still qualifies the buyer for Homestead Exemption. But there are 2 key advantages. First, the buyer cannot get a second mortgage as they only have equitable title to the property. Second, judgements liens against the buyers do not "stick" to the property.

You need to use a regular mortgage note along with the Agreement for Deed. Florida law now requires the purchase of documentary stamps on the warranty deed when you record the Agreement for Deed. This is even though the Warranty Deed may not be recorded for years, if ever, if the buyer defaults. Please check with your own attorney.

STANDARD AGREEMENT FOR DEED

Agreement for Deed

THIS AGREEMENT, Made this _____________ day of _______________ A.D. 19 _____

by and between Norman Linton trustee of the Norman Linton Trust dated XX-XX-XX

of Pinellas County, Florida, hereinafter called Sellers, and Arthur and Txxxa XXXXX (husband and wife)

hereinafter called Buyers, witnesseth:

That if the said Buyers shall first make the payments and perform the covenants hereinafter mentioned on their part to be performed, the said Sellers hereby covenant and agree to convey and assure to the Buyer or their heirs or assigns, in fee simple, clear of all incumbrances whatever, save only restrictions and covenants of Public Record, by a good and sufficient Warranty Deed, the real property situated in the County of Pinellas, State of Florida known and described as follows, to wit:

Lot XX,TAYLOR LAKE SUBDIVISION, according to the map or plat thereof, as recorded in Plat Book XX, page XX, of the Public Records of Pinellas County, Florida.

XXXX Txxxx Lake Circle, Largo FL 337xx, Property address

And the Buyer hereby agrees and covenants to pay to the Seller the sum of Forty five thousand and 0/100 dollars ($45,000.00) in the manner following:

A The sum of $ 00.00 in cash, receipt of which is hereby acknowledged.

B One Promissory Note, attached, in the amount of Forty five thousand and 0/100 dollars ($45,000.00) being paid by monthly payments commencing on the 1st Day of June, 1999 , continuing on the 1st Day of every month thereafter until paid in full and bearing interest at the rate of 12% p.a. See Note attached which forms part of this agreement.

and Buyer covenants to pay all taxes, assessments or impositions that may be legally levied or imposed upon such land subsequent to the year of 1998, and to keep the buildings, structures and other improvements now or hereafter erected or placed upon said premises insured against all loss and damage by fire, tornado or windstorm in some company satisfactory to the Seller in a sum not less than the rebuilding cost of the structures including all demolition and site clearance during the term of this agreement and to promptly pay all premiums for such insurance. All sums recoverable on any such insurance shall be made payable first to the Seller by a loss payable clause satisfactory to the Seller up to the amount of the then outstanding mortgage balance including accrued interest, the balance, if any, being payable to the Buyer.

Initials Buyer(s)………… Seller(s)………….

This Agreement for Deed is assignable by Buyer to another party who will be required to meet Sellers qualifications at that time.

The Buyer is responsible for all maintenance and repairs on the property without limitation.

Buyer (a) shall not commit waste or permit impairment or deterioration of the Property, (b) shall not abandon the Property, (c) shall restore or repair promptly and in a good and workmanlike manner all or any part of the Property to the equivalent of its original condition, or such other condition as Seller may approve in writing, in the event of any damage, injury or loss thereto, whether or not insurance proceeds are available to cover in whole or in part the costs of such restoration or repair, (d) shall keep the Property, including improvements, fixtures, equipment, machinery and appliances thereon in good repair and shall replace fixtures, equipment, machinery and appliances on the Property when necessary to keep such items in good repair, (e) shall comply with all laws, ordinances, regulations and requirements of any governmental body applicable to the Property, and (f) shall give notice in writing to Lender of and, unless otherwise directed in writing by Seller, appear in and defend any action or proceeding purporting to affect the Property, the security of this Instrument or the rights or powers of Seller.

If default shall be made in the payment of said sums of money, or any part thereof as provided in this Agreement for Deed, or in the interest that may become due thereon or any part thereof shall be delinquent and unpaid for a period of fifteen (15) days, or in the event of default in any other covenant herein, then and thenceforth it shall be optional with the Seller, his heirs, personal representatives or assigns to consider the whole of said principal sum expressed in the Agreement as immediately due and payable. In the event of such default, the Buyer agrees to pay all costs, charges, and expenses in collecting the money hereby secured, including reasonable attorney's fees and commission whether collected by foreclosure or otherwise, and any and all monies paid by the Seller by reason of the default of the Buyer. Payments postmarked more than five (5) days after the due date shall be considered late and shall be subject to an additional charge of 5%.

The Buyer shall pay the intangible taxes, documentary stamps and recording of the Agreement for Deed, and for the documentary stamps on the Warranty Deed.

The Seller shall execute and deliver a Warranty Deed to the Buyer when the terms of this Agreement have been met and the full amount due and owing hereunder are paid in full.

IT IS MUTUALLY AGREED by and between the parties hereto, that time of payment shall be an essential part of this contract and that all covenants and agreements herein contained shall extend to and be obligatory upon the heirs, executors, administrators and assigns of the respective parties.

Initials Buyer(s)………… Seller(s)………….

In Witness Whereof, the parties have executed this Instrument or has caused the same to be executed by its representatives thereunto duly authorized.

For buyer(s)

Signed, sealed and delivered in the presence of:

_____________________________________ _____________________________________

Witness Buyer

_________________________________ _________________________________

Witness Buyer

STATE OF FLORIDA

COUNTY OF_______________________________ss:

I hereby certify that on this day, before me, an officer duly authorized in the state aforesaid and in the county aforesaid to take acknowledgements personally appeared

Arthur Xxxxxx and Txxxx Nxxxx to me known to be the person(s) described in or who identified themself(ves) to be the persons described by means of _____________________________________________ and who executed the foregoing instrument and acknowledged before me that _________executed the same for the purpose expressed.

Witness my hand and official seal in the county and state aforesaid this ______________day of ___________________ 19___

(Seal)

_________________________________________________

Notary Public

My Commission Expires______________________

For seller

_____________________________________ ____________________________________

Witness Seller

____________________________________ ____________________________________