THIS AGREEMENT FOR DEED is made and entered into this_____ day of _____________________, 19 ___, by and between ____________ ______________________________________, (hereinafter referred to as "First Party"), and ,
(hereinafter referred to as "Second Party").
WITNESSETH, that if the Second Party shall first make the payments and perform the covenants hereinafter mentioned on his part to be made and performed, the First Party hereby covenants and agrees to convey to the Second Party, his heirs, executors, administrators, personal representatives, or assigns, in fee simple absolute, clear of all encumbrances by a good and sufficient warranty deed, that parcel of land situate in the County of ___________, State of ____________, more fully
described on Exhibit "A", attached hereto and made a part
hereof.
1. The Second Party herein covenants and agrees to pay to the
First Party the sum of ($_____________) Dollars in the
following manner:
a. _________________________________________ ($__________) Dollars paid to the First Party upon execution of this agreement, the receipt of which is hereby acknowledged.
b. The principal sum of ______________________________ ($ _________ ) Dollars, with interest at the rate of ___________ ( ____%) percent per annum, in monthly installments of _________________________________ ($ _________ ), beginning on the ________ day of _____________________, 19 ___, and continuing on the ______ day of each and every month thereafter, until termination of this agreement, as provided hereinafter.
2. Conveyance shall be by a statutory or general warranty deed.
3. Title shall be conveyed free and clear of all encumbrances
except those mortgages or liens, if any, mentioned herein, easements, restrictions, limitations, reservations, covenants and conditions of record not coupled with a possibility of reverter, right of reentry or other reverter right which amounts to a qualification of the fee, and subject also to applicable zoning ordinances and real estate taxes for the year in which the deed is delivered, and thereafter.
4. The Second Party agrees to pay all taxes, assessments, or
impositions that may be legally levied or imposed upon said land apportioned as of the date of this Agreement.
5. Risk of loss by fire or other casualty is on the Second
Party and the Second Party agrees to keep the building upon the premises insured with an insurance company satisfactory to the First Party for a sum not less than its full insurable value. All insurance proceeds shall be payable to the First Party. In the event of a loss by fire or other casualty, the rights and obligations of the parties shall be as follows:
a. If the damage to the building is less than fifty (50%) percent of the total value of the improvements, the Second Party shall be obligated to repair or reconstruct, as the case may be, and the First Party shall either
turn over the insurance proceeds to the Second Party or
apply the proceeds directly to the costs of such repair or reconstruction, the Second Party being entitled to any surplus insurance funds over and above the costs of repair or reconstruction, and the Second Party being liable for any deficiency after application of the insurance money to such costs.
b. If the damage to the building is in excess of fifty (50%) percent of the total value of the improvements, the Second Party shall have the option as to whether to repair or reconstruct following such casualty loss.
(1)If the Second Party elects not to repair or reconstruct, then the unpaid balance of the purchase price, together with accrued interest to ate, but excluding unearned interest, shall at the option of the First Party become due and payable forthwith, and the insurance proceeds shall be applied towards the application of such sum, any surplus of the insurance proceeds over and above the Second Party's obligations
shall be paid to the Second Party. In the event that the contract is paid out as a result of the application of
the insurance proceeds, the First Party shall deliver a deed to the Second Party and consummate the transaction. In the event the contract is not paid out as a result of the application of the insurance process pursuant to an election not to repair or reconstruct after casualty, the proceeds shall be credited to the account of the Second Party and the Second Party will continue to make regular payments pursuant to the terms of the contract until the Second Party's obligations are satisfied and the contract consummated.
(2)If the Second Party elects to repair or reconstruct, the insurance proceeds shall be applied by the First Party to the costs of such repair or reconstruction, the Second Party shall submit the building plans to the First Party for approval, which approval shall be granted if the value of the land after the repair or reconstruction will equal or exceed the value of the land immediately prior to the casualty. If requested by the Second Party, the First Party will, after approval of the Second Party's building plans, turn over the insurance proceeds to an insurance trustee for the
purpose of paying for the repairs or reconstruction. Any surplus of insurance proceeds over and above the costs
of repair or reconstruction shall be delivered to the Second Party, and any deficiency remaining after application of such proceeds to the costs of repair or reconstruction shall be paid by the Second Party.
6. In the event that any or all of the property is taken by eminent domain during the existence of this contract, the rights and obligations shall be as follows:
a. If the amount taken is less than fifty (50%) percent of the total value of the property at the time of the taking, the entire award shall be paid to the Second Party and the contract shall continue unaffected by the taking.
b. If the amount taken is more than fifty (50%) percent of the total value of the property but less than seventy-five (75%) percent of the total value at the time of the taking,
(1)if the value of the property remaining is equal to twice the amount of the Second Party's indebtedness under the contract, then the entire award shall be paid to the Second Party and the contract shall continue unaffected by the taking, but,
(2)if the value of the property remaining is less than twice the amount of the Second Party's indebtedness under the contract, then so much of the award shall be paid to the First Party as to reduce the outstanding indebtedness of the Second Party under the contract to a point where the value of the property not taken is equal to twice the remaining outstanding indebtedness under the contract, the balance of the award shall be paid to the Second Party, and the contract as thus accelerated as to the final payment shall continue unaffected by the taking.
However, such sums as are necessary for the useful alteration or restoration of the uncondemned portion of the property shall be applied for such purpose before the remaining portion of the award is turned over to the First Party for reduction of the debt. In determining the value of the uncondemned portion of the property, the value shall be the fair market value after the completion of such repairs or alterations as may have been necessitated by the condemnation.
c. If the amount taken is more than seventy-five (75%)
percent of the total value of the property at the time of the taking, then the award shall be paid to the First Party to the extent that is necessary to pay
out the contract, such sum including accrued interest to date, but excluding unearned interest, and the balance of the award shall be paid to the Second Party. The contract will thus be consummated and the First Party will convey to the Second Party any of the property herein included which was not taken by eminent domain. In the event the amount of the award
is insufficient to satisfy the outstanding obligations of the Second Party to the First Party, excluding unearned interest, the contract shall nevertheless be terminated as previously provided in this paragraph, but the First Party shall be authorized to sue for a money judgment for any deficiency between the amount of the award and the outstanding obligations of the Second Party.
d. The provisions of this Paragraph shall apply also to
any settlement or agreement reached between the Second Party and any corporation, authority or agency having the power of eminent domain whereby the Second Party voluntarily conveys to such agency, authority, or corporation in order to avoid condemnation proceedings.
7. The Second Party may prepay the entire balance outstanding
at any time without penalty and without notice. Such prepayment shall not include unearned interest. Upon full prepayment, the First Party shall have twenty (20) days in which to deliver a warranty deed.
8. In case of the failure of the First Party to comply with the
terms of this Agreement or to perform any of the covenants hereby made and entered into, the Second Party shall have the option to collect damages at law or to demand specific
performance, costs and reasonable attorney's fees from the First Party.
9. In case of the failure of the Second Party to make payments or any part thereof, or to perform any of the covenants on his part hereby made and entered into, this Agreement shall, at the option of the First Party, be forfeited and terminated, and the Second Party shall forfeit all payments made by him to date on this agreement and said amount shall be retained by the First Party in full satisfaction and liquidation of all damages sustained by the First Party, and the First Party shall have the right to reenter and take possession of the premises aforesaid without being liable in any action in trespass, or otherwise, and to seek such self-help remedies as shall place the First Party in exclusive possession of the premises.
10. As an alternative remedy in the case of any default on behalf of the Second Party, the unpaid balance due under this contract shall, at the option of the First Party, become due and payable, and all costs and expenses of collection, by foreclosure, or otherwise, including reasonable attorney's fees, shall be paid by the Second Party, and all such sums are hereby secured by this agreement.
11. The time of each payment shall be an essential part of this
contract. Any payment not received within ten (10) days of the due date or the accumulation of any three payments not received within five (5) days of the due date, shall constitute a default under paragraph 9 or 10 hereinabove.
12. Any notice necessary under this Agreement may be sent by
mail to the last known address of the party to be notified.
13. All covenants and agreements herein contained shall extend
to and be obligatory upon the successors, heirs, executors, administrators, personal representatives and assigns of the respective parties.
14. The Second Party will not permit, commit or suffer waste and will maintain the improvements at all times in a state of good repair and condition, and will not do or permit to be done anything to the premises that will in any way impair or weaken the security of the First Party's title. In case of the
refusal, neglect or inability of the Second Party to repair and maintain said property, the First Party may, at the First Party's option, make such repairs or cause the same to be made, and advance money in that behalf, which sums advanced or costs of repairs shall be the obligation of the Second Party and shall be secured by this Agreement.
15. The words "First Party" and "Second Party" herein employed shall be construed to include the plural as well as the singular, and the masculine shall include the feminine and neuter where the context so admits or requires.
16. This agreement, and all transactions contemplated hereby, shall be governed by, construed and enforced in accordance with the laws of the State of __________. The parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in ______________ County, State of _______________. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party's reasonable attorney's fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing
party may be entitled. No action by the parties to enforce the terms and conditions of, or to enforce any right stemming from, this Agreement shall be entertained or prosecuted in court more than three months from the date the cause of action therefor initially accrued.
17. While this Agreement may be recorded, the First Party may record a Notice of Termination of said agreement if the Second Party defaults in the performance of the Second Party's obligations and responsibilities under Paragraph 9 or 10 and such termination shall be effective if no legal proceeding is instituted and lis pendens is filed by the Second Party within three months of the date such Notice of Termination was recorded.
18. Unless specifically disallowed by law, should litigation arise hereunder, service of process therefor may be obtained through certified mail, return receipt requested; the parties hereto waiving any and all rights they may have to object to the method by which service was perfected.
IN WITNESS WHEREOF, the Parties have hereunto set their hands and seals the day and year first above written.
Signed, sealed and delivered
in the presence of: "FIRST PARTY"
Witness
______________________________
Witness
"SECOND PARTY"
_____________________________ _____________________________
Witness
_____________________________ Witness
STATE OF ________________________
COUNTY OF ________________________
Before me personally appeared to me well known and known to
me to be the person(s) described in and who executed the foregoing instrument, and acknowledged to and before me that _____________________ executed said instrument for the purposes therein expressed.
WITNESS my hand and official seal, this ___________ day of ____________________, 19 _____.
_____________________________
Notary Public
(SEAL) State of_________________
My Commission Expires:
STATE OF ________________________ COUNTY OF ________________________
Before me personally appeared to me well known and
known to me to be the person(s) described in and who
executed the foregoing instrument, and acknowledged to and before me that _____________________ executed said instrument for the purposes therein expressed.
WITNESS my hand and official seal, this ___________ day of ____________________, 19 _____.
____________________________
Notary Public
(SEAL) State of
My Commission Expires:
This instrument was prepared by: ____________________________
____________________________
____________________________
EXHIBIT"A"
Legal Description