Indiana Land Contract Example – Fill Out and Use This PDF

LAND CONTRACT

(WITH ALTERNATE TAX AND INSURANCE PROVISIONS)

Parties

This Contract, made this ___________day of ___________________________, ____________ between

____________________________________________________________________________________,

hereinafter referred to as the “Seller,”whose address is _____________________________________ and

____________________________________________________________________________________,

hereinafter referred to as the “Purchaser,” whose address is ____________________________________.

Witnesseth:

Description

1. THE SELLER AGREES AS FOLLOWS:

Of Premises

(a) To sell and convey to the Purchaser the following described property:

Land situated in the __________________ of ______________________, County of

______________________, State of MI.

Commonly known as:

Tax ID:

Together with all improvements, appurtenances, tenements and hereditaments, including all

lighting fixtures, plumbing fixtures, shades, Venetian blinds, curtain rods, storm windows,

storm doors, screens, awnings, if any, now on the premises, and subject to all applicable

building and use restrictions, and easements, if any, affecting the Premises.

Terms of

(b) That the consideration for the sale of the above described premises is:

Payment

_________________________ and 00/100 Dollars ($___________.00) of which the sum

___________________________________________________ (__________.00) has

heretofore been paid to Seller, the receipt of which is hereby acknowledged, and the balance

of __________________________________ (____________________) is to be paid to the

Seller, with interest on any part thereof at any time unpaid at the rate of ______% per annum

while the Purchaser is not in default, and at the rate of ___ % per annum when and as often

as the Purchaser is in default. This balance of purchase money and interest shall be paid in

monthly installments of _________________ each, or more at Purchaser’s option, on the

________ day of each month, beginning ____________________________________, said

payments to be applied first upon interest and the balance on principal; PROVIDED, the

entire purchase money and interest shall be fully paid within _________ years from the date

hereof, anything herein to the contrary notwithstanding.

Mortgage by Seller

3. THE SELLER AND PURCHASER MUTUALLY AGREE AS FOLLOWS:

(a) That the Seller may, at any time during the continuance of this contract encumber said land by

mortgage or mortgages to secure not more than the unpaid balance of this contract at the time

such mortgage or mortgages are executed. Such mortgage or mortgages shall be payable in

not less than three (3) years from the date of execution thereof and shall provide for payment

of principal and interest in monthly installments which do not exceed such installments

provided for in this contract; shall provide for a rate of interest on the unpaid balance of the

mortgage debt which does not exceed the rate of interest provided in Paragraph 1 (b); or on

such other items as may be agreed upon by the Seller and Purchaser, and shall be a first lien

upon the land superior to the rights of Purchaser herein; provided notice of the execution of

said mortgage or mortgages containing the name and address of the mortgagee or his agent,

the amount of such mortgage or mortgages, the rate of interest and maturity of the principal

and interest shall be sent to the Purchaser by registered mail promptly after execution thereof.

Purchaser will, on demand, execute any instruments demanded by the Seller, necessary or

requisite to subordinate the rights of the Purchaser hereunder to the lien of any such mortgage

or mortgages. In event said Purchaser shall refuse to execute any instruments demanded by

Seller and shall refuse to accept such registered mail hereinbefore provided, or said registered

mail shall be returned unclaimed, then the Seller may post such notice in two conspicuous

places on said premises, and upon making affidavit duly sworn to of such posting, this

proceeding shall operate the same as if said Purchaser had consented to the execution of said

mortgage or mortgages, and Purchaser’s rights shall be subordinate to said mortgage or

mortgages as hereinbefore provided. The consent obtained, or subordination as otherwise

herein provided, under or by virtue of the foregoing power, shall extend to any and all

renewals or extensions or amendments of said mortgage or mortgages, after Seller has given

notice to the Purchaser as above provided for giving notice of the execution of said mortgage

or mortgages.

Encumbrances on

(b) That if the Seller’s interest be that of land contract, or now or hereafter be encumbered by

Seller’s Title

mortgage, the Seller shall meet the payments of principal and interest thereon as they mature

and produce evidence thereof to the Purchaser on demand, and in default of the Seller said

Purchaser may pay the same. Such payments by Purchaser shall be credited on the sums first

maturing hereon, with interest at the rate provided in Paragraph 1 (b) on payments so made.

If proceedings are commenced to recover possession or to enforce the payment of such

contract or mortgage because of the Seller’s default, the Purchaser may at any time thereafter,

while such proceeding are pending, encumber said land by mortgage securing such sum as

can be obtained, upon such terms as may be required, and with the proceeds pay and

discharge such mortgage, or purchase money lien. Any mortgage so given shall be a first lien

upon the land superior to the rights of the Seller therein, and thereafter the Purchaser shall

pay the principal and interest on such mortgage so given as they mature, which payments

shall be credited on the sums of matured or first maturing hereon. When the sum owing

hereon is reduced to the amount owing upon such contract or mortgage or owing on any

mortgage executed under either of the powers in this contract a conveyance shall be made in

the form above provided containing a covenant by the grantee to assume and agree to pay the

same.

Non-payment of Taxes or

(c) That if default is made by the Purchaser in the payment of any taxes, assessments or

Insurance

insurance premiums, or in the payment of the sums provided for in Paragraph 2(e), or in the

delivery of any policy as herein before provided, the Seller may pay such taxes or premiums

or procure such insurance and pay the premium or premiums thereon , and any sum or sums

so paid shall be a further lien on the land and premises, payable by the Purchaser to Seller

forthwith with interest at the rate as set forth in Paragraph 1(b) hereof.

Assignment by Purchaser

(d) No assignment or conveyance by the Purchaser shall create any liability whatsoever against

the Seller until a duplicate thereof, duly witnessed and acknowledged, together with the

residence address of such assignee, shall be delivered to the Seller. 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 and/or acceptance thereon.

Possession

(e)

The Purchaser shall have the right to possession of the premises 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. In the

event the premises herein above described are vacant or unimproved, the 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.

Right to Forfeit

(f)

If the Purchaser shall fail to perform this contract or any part thereof, the Seller immediately

after such default shall have the right to declare the same forfeited and void, and retain

whatever may have been paid hereon, and all improvements that may have been made upon

the premises, together with additions and accretions thereto, and consider and treat the

Purchaser as his tenant holding over without permission and may take immediate possession

of the premises and have the Purchaser and each and every other occupant removed and put

out. In all cases where a notice of forfeiture is relied upon by the Seller to terminate rights

hereunder, such notice shall specify all unpaid moneys and other breaches of this contract and

shall declare forfeiture of this contract effective in the time period provided by statute or if no

statutory provision applies then within 30 days after service unless such money is paid and

any other breaches of this contract are cured within that time.

Acceleration Clause

(g)

If default is made by the Purchaser and such default continues for a period of thirty (30) days

or more, and the Seller desires to foreclose this contract in equity, then the Seller shall have at

his option the right to declare the entire unpaid balance hereunder to be due and payable

forthwith, notwithstanding anything herein contained to the contrary.

Disposition of Insurance

(h)

That during the existence of this contract, any proceeds received from a hazard insurance

Proceeds

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.

(i)

Time shall be deemed to be of the essence of this contract.

(j)

The individual parties hereto represent themselves to be of full age, and the corporate parties

hereto represent themselves to be valid existing corporations with their charters in full force

and effect.

Notice to Purchaser

(k)

Any declarations, notices or papers necessary or proper to terminate, accelerate or enforce this

contract shall be presumed conclusively to have been served upon the Purchaser if such

instrument is enclosed in an envelope with first class postage fully prepaid, if said envelope is

addressed to the Purchaser at the address set forth in the heading of this contract or at the

latest other address which may have been specified by the Purchaser and receipted for in

writing by the Seller, and if said envelope is deposited in a United States Post Office Box.

Additional Clauses

______________________________________________

______________________________________________

Land Contract Purchaser(s) / Vendee(s)

_______________________________________________

_______________________________________________

Use this

STATE OF MICHIGAN

Acknowledgement Form

} S.S.

for Individuals

COUNTY OF ____________________

The foregoing instrument was acknowledged before me this _________day of _________________,

__________ by _____________________________________________________________________

____________________________________________

Notary Public

______________________________________County

My commission expires: _______________________

Use this

STATE OF MICHIGAN

Acknowledgement Form

} S.S.

for Corporations

COUNTY OF ____________________

The foregoing instrument was acknowledged before me this ____________day of ________________,

________ by ________________________________________________________________________

__________________________________________

Notary Public

____________________________________County

My commission expires: _____________________

Drafted by:

When recorded return to: