RESIDENTIAL INSTALLMENT SALES AGREEMENT
THIS AGREEMENT, made this ____ day of ______________, 2005, between _________________, with a mailing address 0f ________________________________ (hereinafter referred to as "Owner"), and _____________________, with a mailing address of _______________________________ (hereinafter referred to as "Purchaser").
THAT the said Owner, in consideration of the covenants and agreements hereinafter contained, on the part of the Owner to be kept and performed, has agreed and does hereby agree to sell and convey unto the said Purchaser, the Purchaser's heirs and assigns, and the Purchaser has agreed and does hereby agree to purchase the tract of land described in Exhibit "A", attached hereto and incorporated by reference herein.
1) PRICE AND PAYMENT TERMS. The total consideration between the parties for the purchase of the real estate described in Exhibit "A" is as follows:
A) Buyer agrees to purchase the Property for a purchase price of _________,
which shall be paid as follows:
1. $__________ earnest money deposit upon the execution of this Agreement. The remaining $__________ is to be paid with interest hereinafter set forth:
2. The ___________ pro-rated P&I payment is for ( ) days is
___________, the pro-rated share of the Real Estate Taxes is
$_______, and the pro-rated share of insurance is $_______,
for a total payment upon taking possession of $________. The
estimated Real Estate tax escrow is $_______ per month, the
estimated insurance escrow is $________ per month. Buyer
must obtain property insurance, naming seller as mortgage
holder, within 90 days.
3. _______________ to _______________ interest at the rate of
seven (7 ¼% ) percent – principal and interest payment will be
$_________ per month.
4. _______________ to _______________ interest at the rate of
seven and a half (7.5%) percent – principal and interest will be
$__________ per month.
5. _______________ to _______________ interest at the rate of
eight percent (8%) – principal and interest will be $_________
6. _______________ to _______________ interest at the rate of
eight and a half percent (8.5%) – principal and interest will be
$_________ per month.
7. _______________ to _______________ interest at the rate of
nine percent (9%) – principal and interest will be $_________
C) Purchaser agrees to make a good faith attempt or attempts to obtain financing from a local lending institution and pay the remaining balance due in full no later than the expiration of _________ from the date hereof. If such financing has not been obtained by the end of the ______ year, Purchaser shall apply ever ________(months/year(s)) ___________ thereafter to two (2) lending institutions or mortgage companies, one (1) of which shall be the choice of Owner.
It is understood and agreed that should the Purchaser fail to obtain financing with ______ years as contemplated by this Agreement, that such failure shall constitute a default.
All of such applications by Purchaser must be "good faith" applications and Purchaser must not have intentionally incurred debts or obligations which would prevent him from obtaining such refinancing. If Purchaser has intentionally incurred such debt or obligation which would prevent him from obtaining financing, then the entire unpaid remaining balance, together with any accrued interest thereon, shall be due and payable immediately. If the balloon payment has not been made at the expiration of the initial ____ year period, the interest rate shall be adjusted annually to conform to the average of the maximum rate of interest charged on mortgages by ______ of _________, Pennsylvania, but no less than ______ percent, and in event shall this Agreement extend beyond a period of ______ years from the initial date of this Agreement for full payment; otherwise, this Agreement shall be declared null and void.
In obtaining financing at the end of ____ years, it is understood and agreed that the Owner will finance such amount of the contract price necessary to assure a sufficient down payment to provide for the required financing, provided that the Owner shall not be required to finance any such down payment sum for more than an additional _____ year period.
Purchaser acknowledges his/her/their understanding that if he/she/they are unable to pay the balance due at the end of _____ years for any reason whatsoever, including the non-availability of money to borrow, he/she/they will be in default and may lose this real estate and hereby releases and forever discharges the law firm of ________ and the real estate firm of _________ from any liability whatsoever as a result of the loss of said property by reason of his/her/their inability to arrange refinancing, full disclosure of such risks of refinancing having been made to Purchaser by the aforesaid law firm and real estate firm prior to the execution of this Agreement.
2) ESCROW. In addition to the aforesaid monthly payments, Purchaser shall pay to Owner, therewith, IF REQUESTED, a monthly sum, equal to one-twelfth (1/12) of the annual real estate taxes, one-twelfth (1/12) of the annual sewer rent, and one-twelfth (1/12) of the annual fire insurance premium, which Owner agrees to hold in escrow to pay all real estate taxes, sewer rent and fire insurance premiums as same become due.
If the above-mentioned escrow is not required, then the Purchaser shall provide paid receipts for real estate taxes, sewer rent and fire insurance premiums on or before the penalty date for payment of same.
3) INSURANCE. Purchaser agrees to keep the buildings thereon insured against damage or loss by fire for a sum in an amount that is equal to at least the replacement costs of the improvements, and with extended coverage against liability for personal injury and property damage for the sum of _________, payable to the Owner, as his/her/their interest may appear.
Proceeds of claims under the insurance policy or for condemnation or the like shall be first applied at the direction of the mortgagee in accordance with the terms of the Owner's mortgage (if any), then shall be paid to the Owner to the extent of the unpaid balance of the purchase price (due credit being given for sums retained by the bank, if any), and the balance shall be paid to the Purchaser, unless the mortgagee in its discretion releases funds to repair or restore the premises in which case Owner and Purchaser will be bound to apply such funds for such purpose and if there is no underlying mortgage of the Owner, then Owner agrees, at the option of the Purchaser, tat the fire insurance proceeds either shall be paid to the Owner on account of the unpaid purchase price or shall be used to repair, restore and reconstruct the demised premises.
4) PREPAYMENT. Purchaser shall have the right to prepay the purchase price in whole or in pat at any time and from time to time as he/she/they may desire, as long as payments on principal correspond to the principal portion of the subsequent payment or payments as shown on the amortization schedule.
5) MAINTENANCE AND REPAIR. Throughout the term of this Agreement, Purchaser shall keep and maintain the premises in as good order and repair as it is as of the date hereof, shall commit no waste therein, and shall permit the Owner to come upon the premises semi-annually upon two (2) days' written notice for the purpose of inspecting the premises to determine the current state of maintenance and repair.
6) MODIFICATION OF AGREEMENT. No extension, change, modification, or amendment to or of this instrument of any kind shall or will be made or claimed by the Owner or Purchaser, and no notice of any extension, change, modification or amendment made or claimed by the parties hereto shall have any force or effect whatsoever except that same shall be signed in writing on the Agreement or attached hereto and be endorsed by the parties hereto.
7) TRANSFER TAXES. Cost of all documentary stamps, recordation tax and transfer tax required either on the deed of conveyance or required to be paid at the time of the recording of the deed of conveyance, shall be divided equally between the parties hereto.
8) DUPLICATE COPY. This Agreement is executed in duplicate, either duplicate copy of which shall constitute an original.
9) DEED ESCROW. Owner and Purchaser agree that a fully executed deed shall be held in escrow by the law firm of _________________, its successor or successors, until such time as the entire principal balance, with accrued interest thereon, if any, has been paid in full by Purchaser. At such time, Owner authorizes Escrow Agent, through its duly authorized representative, to deliver the deed to Purchaser. This authorization shall survive the death or incompetency of Owner. _____________, Esquire, partner of __________________, Escrow Agent, by joining herein, agrees that ________________ will perform its duties as Escrow Agent in accordance with the provisions of this paragraph.
Owner will give Purchaser a credit, to be deducted from the unpaid principal balance, for the Owner's share of the realty transfer tax. This credit shall be taken by the Purchaser from the appropriate portions of the last payment or payments.
10) DEED DELIVERY. Upon payment in full of the principal sum, together with any accrued interest thereon which may be due, the Owner shall, at his/her/their own expense, make, execute and deliver a deed, or, if a deed is escrowed as set forth in Paragraph 9 above, the Owner authorized the hereinabove named Escrow Agent to deliver to the Purchaser, a good and sufficient deed for the proper conveying and assuring of the premises in fee simple, free from all liens and encumbrances and marital rights under the Pennsylvania Divorce Code, such conveyance to contain the usual covenants of special warranty, excepting any existing restrictions and easements of record.
11) DELIVERY OF POSSESSION. Possession of the premises shall be delivered to the Purchaser, his/her/their heirs and assigns, on the ____ day of ___________, until which time the Owner shall be entitled to have and receive the rents, issues and profits thereof.
12) BUILDING CODE COMPLIANCE CERTIFICATION. Owner hereby certifies that the building erected on the within described premises is not in violation of any local, state or federal ordinances, codes or laws, and is, in fact, in compliance with all same, and that the premises may lawfully be used as same now exists.
13) ZONING CERTIFICATION. Owner warrants that the present use of the premises is in compliance with the provisions of the existing zoning ordinance of the Township/City/Borough of _______________.
14) PUBLIC IMPROVEMENTS. Owner warrants and represents that no municipal work is in progress and none has been recently completed for which a municipal assessment and lien may be filed and that he/she/they has/have no notice or knowledge of any pending or contemplated municipal improvement for which a municipal assessment and lien may be filed. From and after the date hereof, Purchaser alone shall be liable for the payment of any municipal assessment, utilities and any lien filed against the premises.
15) ABEYANCE OF FORECLOSURE. Owner agrees not to commence any foreclosure proceedings in the event of default for a period of thirty (30) days.
16) SET-OFF OF LIEN. Owner and Purchaser agree that in the event the Owner defaults or fails to make mortgage/judgment payment to __________ Bank of _____________, Pennsylvania (hereinafter "Lender"), which mortgage/judgment constitutes a lien on the within described property, Purchaser shall be entitled to set-off the payment amount due on the mortgage/judgment against the payment schedule of this Agreement. In such event, Purchaser shall be entitled to pay the mortgage/judgment payment directly to Lender.
17) OWNER ASSUMES COSTS ASSOCIATED WITH CALL OF MORTGAGE. It is acknowledged by the parties that the mortgage between Owner and Lender contains a "due-on-sale" clause. In the event that Lender accelerates the mortgage because of the transfer herein occurring, Owner agrees to immediately defend any action brought by Lender at Owner's own cost and further agrees to hold Purchaser free and harmless from any and all liability that may be incurred by Purchaser as a result of the attempt of Lender to enforce the "due-on-sale" clause and further agrees to indemnify Purchaser for any loss or expenses incurred as a result of defense of any such suit instituted by Lender.
In the event that the mortgage/judgment in favor of Lender, which constitutes a lien on the within described property, is declared to be in default as a result of this Agreement (and not as a result of a failure by Owner to make payments as required under the terms of that mortgage/judgment), Purchaser agrees to pay the remaining principal balance in full to the Owner within sixty (60) days of receipt of written notice that the mortgage/judgment is in default. Purchaser agrees to make applications to at least two (2) lending institutions or mortgage companies for fund sufficient to pay the remaining balance. Owner shall have the right to choose one (1) of those lending institutions. In the event that Purchaser is unable to obtain financing at the time and Owner is forced to obtain alternate financing, Purchaser agrees that the interest rate payable under the terms of this Agreement shall be increased to the interest rate being paid by the Owner for such alternate financing.
19) LATE CHARGE. Purchaser shall pay to Owner a late charge of five (5%) percent of any monthly installment not received by Owner within ten (10) days after the installment is due.
20) IMPROVEMENTS TO PREMISES. Purchaser shall not alter, remodel or add to the existing improvements on the premises during the term of this Agreement without first obtaining the written consent of Owner, and if such consent is given, Purchaser shall not authorize any materials to be delivered nor any work to be performed without first causing to be filed in the Office of the Prothonotary of Erie County, Pennsylvania, a Stipulation Against Materialmen's and Mechanics' Liens signed by the general contractor, if one, or by all suppliers, contractors, sub-contractors, and Purchaser, if Purchaser acts as his/her/their own general contractor.
21) FUTURE ENCUMBRANCES. Owner agrees that he/she/they will not encumber the property described herein any more than it is encumbered at the time of the execution of this Agreement.
23) CONDOMINIUM OBLIGATIONS. Purchaser agrees to pay any and all obligations which occur as a result of the Condominium Code of Regulations, i.e., condominium fees, and utilities.
24) PERSONAL PROPERTY TAXES. Owner acknowledges his/her/their obligations to pay any personal property taxes levied by this County of Erie, Pennsylvania, as a result of this transaction.
25) EVENTS OF DEFAULT. The following shall constitute Events of Default under this Agreement:
A) Failure of the Purchaser to make any payment of principal and interest when the same is due, time being of the essence.
B) Failure of the Purchaser to make any required repairs to the property, when given proper notice by the Owner as provided by law.
C) Failure of the Purchaser to comply with any other term of this Agreement and, upon receipt of written notice from the Owner of such failure as required by law, the failure of the Purchaser under Paragraph 25(A) herein, which shall be corrected within thirty (30) days of receipt of the notice and the failure of the Purchaser under Paragraph 25(B) herein, which shall be corrected within sixty (60) days of receipt of the notice. Written notices shall be delivered to the Purchaser by certified mail at the property address and shall be effective upon receipt unless delivery is refused or in any manner not accepted by the Purchaser, in which case such notice shall be effective as of the date of mailing.
D) The making of an assignment for the benefit of creditors, or the insolvency of the Purchaser, or reorganization proceedings, whether under the Bankruptcy Act or otherwise.
26) DEFAULT. The Owner shall have the following rights upon the occurrence of an Event of Default:
A) To retain the Earnest Money Deposit and all monies paid pursuant to the terms of this Agreement as liquidated damages. The Purchaser agrees that if the Owner shall retain such monies, that the Purchaser’s interest in the property shall revert to and be absolutely vested in the Owner, free and clear from any claim whatsoever by the Purchaser. If the Purchaser has not surrender possession of the property to the Owner, the Owner shall have the right to pursue an action in ejectment for possession of the property seeking a Writ of Possession against the Purchaser. Purchaser shall be responsible for any and all costs and reasonable attorney’s fees incurred by the Owner to regain possession of the property; or
B) Owner may accelerate the payment of the balance due hereunder and demand payment in full of the principal sum and interest due under this Agreement if the Purchaser refuses to surrender possession of the property; or
C) To apply the Earnest Money Deposit and all monies paid hereunder on account and proceed with an action at law for damages; or
D) To proceed in equity for specific performance of this Agreement; or
E) To take any other legal or equitable remedy as provided by law.
27) SEVERABILITY. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
28) CAPTIONS. The captions used in this Agreement are for convenience only and do not in any way restrict, modify or amplify the terms of this Agreement.
LAW. This Agreement shall be governed by, construed under and interpreted and
enforced in accordance with the laws of the
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have hereunto set their hands and seals the day and year first above written.
COUNTY OF _________ :
On this, ___ day of ____________, 2005, before me, the undersigned officer, personally appeared _____________ known to me (or satisfactorily proven) to be the person ______________ whose name is/are subscribed to the within instrument, and acknowledged that he/she/they executed same for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.