LAND
INSTALLMENT CONTRACT
Chapter
5313 of the Ohio Revised Code contains additional rights and obligations of a
Seller and a Buyer under a Land Installment Contract other than those set forth
in this Land Installment Contract. Before signing this Land Installment
Contract, it is recommended that Buyer consult with legal counsel.
This Agreement is made
and entered into by and between:
Seller2
SS#
Whose Marital Status
is:________________________________________________________________________ ( respectively)
whose address is
(hereinafter referred to as “Seller”) and:
(hereinafter referred
to as “Buyer”).
Seller agrees to sell
to Buyer, and Buyer agrees to purchase, upon the following terms and
conditions, the real estate, improvements, fixtures, appurtenances, commonly
known as:
The
legal description of which is as follows:
(hereinafter
referred to as "Property"):
1) CONTRACT PRICE, METHOD OF PAYMENT,
INTEREST RATE:
a)
In consideration whereof, the Buyer agrees to
purchase the above described Property for the sum of:
Dollars ($ ), payable as follows:
b) The
sum of $ as
a down payment at the time of execution of the within Land Contract, the
receipt of which is hereby acknowledged.
c)
Thereby, leaving principal balance owed by Buyer
of $_________________________
to be paid as follows:
i)
Remaining principal balance is payable with
interest, in consecutive monthly installments of $_______________beginning on the _______________ and on or before the 7th day of each and every month
thereafter until said balance and interest is paid in full.
ii) The
interest on the unpaid balance due hereon shall be _______________ (_______________ %) percent
per annum computed monthly, in accordance with a _______________ month amortization schedule during the life of this
Contract. This rate shall remain constant.
d) Each
monthly payment shall also include 1/12 of the annual taxes, insurance and
condo fees (if applicable) due upon Property.
i)
The estimated taxes are $_______________ per year which is $_______________ per month.
ii) The
estimated insurance costs are $_______________ per year which is $_______________ per month.
iii) The
estimated condo fee costs are $_______________ per year which is $_______________ per month.
e)
The
Total payment due the Seller per month is:
i)
Principal
& Interest + Taxes + Insurance + Condo Fee (if applicable) = $_______________
f)
On the _______________ anniversary of the execution of this land contract
the entire balance of unpaid principal and interest shall become due and
payable without demand.
g)
The unpaid principal balance on which interest
shall accrue shall be adjusted monthly.
h) If
any payment is not received by Seller within fifteen business days of the due
date there shall be a late charge of (5%) of the principal and interest part of the payment assessed.
i)
The Buyer may pay the entire balance due under
this contract without prepayment penalty.
2) RECORDING OF CONRACT:
Seller shall permit a copy of this Land Contract to be recorded in the _______________ County Recorders Office at Buyers expense and
discretion at any time subsequent to the execution of this contract by the
parties hereto.
3) POSSESSION: The
Buyer shall be given full possession of the above described Property on: _______________________________, and shall thereafter have and hold the
same subject to the provisions for default hereinafter set forth. If conditions
develop after contract execution which delays the date of Buyers possession,
there shall be a proration of any payments due under this contract until full
possession is given to the Buyer. Such
conditions may include buy are not limited to: acts of God, natural causes of
damage, discovery of dangerous or adverse conditions not previously disclosed, or
other acts or conditions which result in the property being deemed unsuitable
for occupancy.
4) REAL ESTATE TAXES AND ASSESSMENTS:
Buyer shall be responsible for all real estate taxes and assessments accruing
subsequent to and prorated from the date of execution of this contract.
5) PERSONAL PROPERTY: The following personal
property is included with the Property:
____________________________________________________________________________________________________
____________________________________________________________________________________________________
____________________________________________________________________________________________________
6) INSURANCE:
Seller shall maintain a NON OWNER OCCUPIED “LANDLORD TYPE” insurance policy with:
a)
Comprehensive liability insurance for bodily
injury or death to any person or persons.
b) Property
damage insurance with fire and extended coverage insurance.
c)
The amount shall be the REPLACEMENT VALUE OF THE PROPERTY. Seller and Buyer shall be
named as insured parties in the insurance policies required above, as their
interests appear, and Seller shall obtain a standard mortgagee's endorsement
for the protection of Seller's mortgagee. Buyer shall obtain and pay a separate
policy insuring Buyer's household goods and other personal property.
d) Property
current insurance information:
i)
Insurance Company: ___________________________________________________
ii)
Agent Name: ___________________________________________________
iii)
Agent Phone#: ___________________________________________________
iv)
Policy Number: ___________________________________________________
v)
Deductible: ___________________________________________________
vi)
Is current (Y/N)
and paid through:__________
e)
Seller agrees to keep Property insured and all
times and further agrees to give Buyer written notice of any insurance
cancellation or changes within 10 days of notification of said occurrence.
f)
Seller agrees to send copy of Property insurance
policy to Buyer within 10 days of execution of this contract, and upon request
as needed.
7) MANNER OF PAYMENT OF INSURANCE AND REAL
ESTATE TAXES AND ASSESSMENTS. Seller shall pay
directly the premiums for the insurance policy maintained by Seller as
specified above and shall pay directly those real estate taxes and assessments
for which Buyer is responsible as specified above. Buyer shall pay, in addition
to and at the same time as monthly installments are due Seller under this
Contract, an amount equal to one-twelfth the estimated annual cost of such
insurance and taxes and assessments, as adjusted by Seller from time to time.
Provided, however, if Seller's mortgagee pays the insurance premiums and/or
real estate taxes and assessments on behalf of Seller, the monthly amount
payable by Buyer to Seller for such insurance and/or taxes and assessments
shall be the amount determined by Seller's mortgagee, as adjusted by the
mortgagee from time to time. When this Contract is completed by Buyer, Seller
shall refund to Buyer or credit against the Purchase Price a sum equal to the
amount by which such additional payments received from Buyer exceeds the sum of
all payments made by Seller for insurance and taxes and assessments for which
Buyer is responsible hereunder.
8) SELLER'S MORTGAGE, ENCUMBRANCES:
Seller shall pay any notes secured by mortgage(s) now encumbering or hereafter
placed on the Property by Seller in accordance with the terms thereof. If
Seller is now or goes into default under any such note secured by a mortgage
encumbering the Property, then Buyer may cure such default and make payments
directly to said lender and all sums so paid by Buyer shall be credited by
Seller as payments under this Contract.
a)
The Property is presently subject to the
following encumbrances:
i)
A
first mortgage to ______________________________________ in the amount of _____________________ Dated
_____________________ combined with note at a (fixed
or variable)interest rate of ____________________________ amortized over ____________________ months with a monthly principal and
interest payment of __________________ and a monthly PMI payment of __________________ referenced by loan number ______________________________ Date of last Payment Made _____________________
Note is current (Y/N) .
ii) A second mortgage to
______________________________________ in the amount of _____________________ Dated _____________________ combined with
note at a (fixed or variable)interest
rate of ____________________________ amortized over ____________________ months with a monthly principal and interest payment
of __________________ and a monthly PMI payment of __________________ referenced by loan number ______________________________ Date of last Payment Made _____________________ Note is current (Y/N) .
iii) Other encumbrances known by Seller
(i.e. tax liens, assessments, IRS liens, Judgements etc.)
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
_____________________________________________________________________________________________________________
b) Zoning
ordinances; legal highways; covenants, restrictions, conditions and easements
of record; the lien of real estate taxes and assessments not yet due and
payable.
c)
Seller shall not place any additional
encumbrances on the Property.
d) Seller understands that this transaction
may cause the mortgagee to exercise their right to accelerate the loan and call
the remaining balance due. In any such event the Seller agrees to hold the
Buyer harmless and in no way liable in any way for any damage to the Seller
that may result from such action.
SELLER INITIALS__________/_________
9) LIMITED POWER OF ATTORNEY: The
Sellers do hereby make, constitute and appoint Buyer as their true and lawful
Attorney in fact for them and in their name, place and stead, in and for the
purpose of making payments on, and receiving information on the accounts and
balances of the above specified encumbrances on the Property. This Power of Attorney shall not be affected
by the disability of the Sellers.
10) TITLE EVIDENCE:
Upon full payment of this contract Seller shall provide a title insurance
commitment (with policy premium prepaid) in the amount of the purchase price,
showing Seller in marketable title in fee simple, free and clear of all liens
and encumbrances except those created by or assumed by Buyer and those referred
to above.
11) SELLER DISCLOSURE STATEMENT:
Seller has provided to Buyer a disclosure form relating to the physical
condition of the Property pursuant to § 5302.30 of the Ohio Revised Code, (If
no disclosure form has been provided, Buyer may have the right to rescind this
Contract within 60 business days of the date it was signed.)
12) UTILITIES:
Buyer shall pay for all charges incurred for all utility services used or
consumed at the Property from and after the date possession is given to Buyer.
13) MAINTENANCE, REPAIRS & USE:
Except as noted below, Buyer accepts the Property in "as is"
condition and agrees to maintain and repair the Property in as good condition
and state of repair as the Property are in as of the date of this Contract,
reasonable wear and tear expected. Buyer further agrees to correct all housing
and building code violations within sixty (60) business days of certified
receipt of notice of such violation from Seller or from the governmental
authority involved.
Seller
shall have the right, upon at least 72 hours notice to Buyer, to enter upon and
inspect the Property at reasonable
times during the continuance of this Contract. Buyer shall promptly notify
Seller of any damage to the Property, which exceeds the amount of the insurance
deductible.
14) DAMAGE AND DESTRUCTION: If
after the date of the Seller’s execution of this contract and before the
completion of this contract the
Property shall be substantially damaged
or destroyed Buyer may:
a)
Proceed with the contract and be entitled to all
insurance money, if any, payable to Seller under all policies covering the
Property or
b) Rescind
this contract, and thereby release all parties from liability hereunder, by
giving Seller notice within 60 business days after occurrence of said damage.
15) EMINENT DOMAIN:
If after the date of the Seller’s execution of this contract and before the
completion of this contract the
Property or any portion thereof is
taken in appropriation proceedings or by the right of eminent domain or by the
threat of the same then Buyer may:
a)
Proceed with the contract and be entitled to all
awards of money, if any, payable to Seller for
the taking of said Property or
b) Rescind
this contract, and thereby release all parties from liability hereunder, by
giving Seller notice within 60 business days after said occurrence.
16) ASSIGNMENT: Buyer shall have the unqualified right to
assign or sell any or all interests in the Property or in this contract. Any such subsequent sale or assignment shall
release the original Buyer name herein from all rights, obligations and
liabilities due under this agreement, and shall substitute the assignee in
their place.
17) BUYER'S DEFAULT: Buyer
is in default if:
a)
Any installment payment to be made by the Buyer
under the terms of this Land Contract is not paid by the Buyer when due or
within 45 business days thereafter, time being of the essence.
b) Buyer
fails to observe or perform any other provision, covenant or condition required
of Buyer within 60 business days after Seller gives certified written notice to
Buyer of Buyer's failure to observe or perform said provision, covenant or
condition.
c)
Buyer abandons the Property during the
continuance of this Contract.
d) Upon
Buyer default Seller shall the right to remove the Buyer and extinguish any or
all of the Buyer’s interests in the Property, as provided by the laws of the
State of Ohio.
Upon
any of the above defined defaults, or if Buyer defaults on any other terms of
this agreement, then Buyer agrees to surrender said Property to the Seller,
with all payments (including downpayment) to be forfeited as full liquidated
damages in accordance with applicable statutes, and, in absence of any other
conveyance, this instrument shall serve as reconveyance to the Seller without
any further action by either party. Buyer hereby waives all right-of-protest or
notice and his status shall revert to tenancy at sufferance in the absence of
any lease or rental agreement to the contrary.
18) COMPLETION OF CONTRACT AND TRANSFER OF
PROPERTY:
a)
When the Purchase Price and all other amounts to
be paid by Buyer pursuant to this Contract are fully paid, Seller shall convey
the Property to the Buyer by transferable and recordable general warranty deed,
warranting good and marketable fee simple title to the Property, free and clear
of all liens and encumbrances whatsoever, except for the following: those which
have been created or assumed by Buyer; zoning ordinances; legal highways;
covenants, restrictions, conditions and easements of record which do not
unreasonably interfere with the presents lawful use of the Property; and the
lien of real estate taxes and assessments not then due and payable.
b) Buyer
reserves the right to convert this contract to note and mortgage which shall
bear the same terms as this contract for the remaining balance and receive a
warranty deed to the Buyer or assigns from the Seller any time the following
conditions have been met by the Buyer:
i)
20% of the purchase price has been paid to the
Seller.
ii)
Buyer is willing to pay all the costs of title
transfer and document preparations.
19)
PRIVATE COURT TRIAL: In the event that litigation
is brought in any State or Federal Court, relating to, arising out of or
concerning this contract, we hereby agree and covenant with each other to waive
and give up the right to a jury trial and to submit all manner of causes of
action, controversies, differences, claims or demands whatsoever, whether of
fact or of law or both, to be resolved at the request of any party, by a trial
on order of reference conducted by a retired judge or justice recommended by
the Ohio Private Trial Association, or its successors, appointed pursuant to
the provisions of Ohio Revised Code Section 2701.10 or any amendment, addition
or successor section thereto to try determine and adjudicate the case in its
entirety. The parties intend this reference agreement to be specifically
enforceable in accordance with said section. If the parties are unable to agree
upon a retired judge recommended by the Ohio Private Trial Association to act
as judge then one shall be appointed by the Presiding Judge of the Common
Plea’s Court of the county wherein the hearing is to be held. The parties
further agree to assume full responsibility for providing facilities,
equipment, and personnel reasonably needed by the retired judge during his/her
consideration of the action or proceeding and to pay in advance, to the retired
judge, the estimated reasonable fees and costs of the trial or proceeding as
maybe specified in advance by the retired judge in accordance with his/her
customary fee schedule. The parties shall initially share equally, by paying
their proportionate amount of the estimated fees and costs of the retired
judge. Failure of any party to make such a fee deposit shall result in a
forfeiture by the non-depositing party of the right to prosecute or defend the
cause(s) of action which is (are) the subject of the reference, but shall not
otherwise serve to abate, stay, or suspend the reference proceeding. The judge
shall determine which is the prevailing party and shall include in the award
that party's reasonable attorney fees (and costs). This provision operates as
an agreement by the parties hereto for reference pursuant to Ohio Revised Code
Section 2701.10. Copyright 1994, Ohio Private Trial Association
20) MISCELLANEOUS:
(a) As
used herein, the term "Seller" and "Buyer" include,
respectively, all persons signing this Contract in the capacity so stated and
his, hers, or its respective heirs, successors, and assigns, and all
obligations of each party herein are joint and several.
(b) This
contract shall be governed by the laws of the State of Ohio, and, if any
provision hereof is in conflict with any federal law or law of the State of
Ohio, then any such terms shall be deemed modified to conform to such law
without affecting the remaining provisions of this Contract.
(c) Pending
orders of any public agency against the Property are as follows:
_____________________________________________________________________________________________________________
(None, if nothing stated)
(d) If
this Contract is entered into pursuant to a real estate purchase contract, the
term "closing" when used in said purchase contract shall for all
purposes be defined as the date of execution of this Contract. If there are
inconsistencies between the terms of the purchase contract and the terms of
this Contract, the terms of this Contract shall prevail.
21) BUYER DISCLOSURES:
a)
Buyer
is a professional real estate investor who is buying the Property for the
purpose of making a profit.
b)
There
are no agreements or promises made by either party to either party, which have
not been placed into writing and accepted by both.
c)
Buyer’s
interest in this contract may or may not be held in trust, the beneficial
interest of a trust or any other title holding entities.
d)
Buyer
has not advised Seller in any course of action which materially affect Sellers
decision with respect to this transaction, nor have they held themselves to be
competent legal, accounting, or financial counselors in connection with any
action Sellers might take.
e)
Buyers
made a full disclosure of their professional expertise as a professional real
estate investors who are in business to make a profit, and this was disclosed
from our first contact.
f)
Buyer did not advise the Seller as to the true
value of said Property in this transaction and made no statement or expressed
opinion of value in connection with the Property in this transaction.
WE
HAVE HAD EVERY CLAUSE AND LINE OF THIS AGREEMENT READ TO US AND HAVE HAD ALL
OUR QUESTIONS ANSWERED TO OUR SATISFACTION, AND WE HAVE BEEN ADVISED THAT WE
SHOULD SEEK PROFESSIONAL AND LEGAL COUNSEL IF WE NEED IT.
IN WITNESS WHEREOF, The said Seller(s) has hereunto set his hand and seal this __________ day of ______________________________________, __________.
Signed,
sealed and delivered in our presence.
WITNESSES:
______________________________________________ __________________________________________________
NOTARY, Printed Name à Seller
Date
Print
name & Sign above
______________________________________________ __________________________________________________
WITNESS, Printed Name: à Seller
Date
Print
name & Sign above
Buyer,
as trustee of
the above named trust and not personally Date
STATE
OF __________ COUNTY OF _______________________________
This instrument was acknowledged before me a notary
public by:
(Seller 1) (Seller
2) Sellers(s)
who, being first sworn affirmed that he/she executed the foregoing for the
purposes contained therein on this
__________ day of __________, __________.
__________________________________
NOTARY
PUBLIC