Contract for Deed

Contract for Deed

Tax Statements for the real property described in this instrument should be sent to:

--------Above This Line Reserved For Official Use Only-------------

CONTRACT FOR DEED

THIS DAY this agreement is entered into by and between , hereinafter referred to as "SELLER", whether one or more, and , hereinafter referred to as "PURCHASER", whether one or more, on the terms and conditions and for the purposes hereinafter set forth:

1. SALE OF PROPERTY

For and in consideration of TEN DOLLARS ($10.00) and other good and valuable considerations the receipt and sufficiency of which is hereby acknowledged, Seller does hereby agree to convey, sell, assign, transfer and set over unto Purchaser, the following property situated in County, State of Minnesota, said property being described as follows:

(Type description or attach description as exhibit "A")

Together with all rights of ownership associated with the property, including, but not limited to, all easements and rights benefiting the premises, whether or not such easements and rights are of record, and all tenements, hereditaments, improvements and appurtenances, including all lighting fixtures, plumbing fixtures, shades, venetian blinds, curtain rods, storm windows, storm doors, screens, awnings, if any, and now on the premises.

SUBJECT TO all recorded easements, rights-of-way, conditions, encumbrances and limitations and to all applicable building and use restrictions, zoning laws and ordinances, if any, affecting the property.

2. PURCHASE PRICE AND TERMS

The purchase price of the property shall be $ . The purchaser does hereby agree to pay to the order of the Seller the sum of Dollars ($ ) upon execution of this agreement, with the balance of $ being due and payable as follows:

(a) Balance payable in () monthly installments of Dollars ($) each, with the first installment being due and payable on the day of , and a like payment on the first day of each month thereafter until the day of , , when the final payment shall be due. No interest.

(b) Balance payable, together with interest on the whole sum that shall be from time to time unpaid at the rate of per cent, per annum, payable in the amount of $ dollars per month beginning on the day of , and continuing on the same day of each month thereafter until fully paid.

(c) Balance payable, together with interest on the whole sum that shall be from time to time unpaid at the rate of per cent, per annum, payable in the amount of dollars per month beginning on the day of , , and continuing on the same day of each month thereafter until the day of , , when all remaining principal and interest shall be paid. (Balloon payment)

If interest is charged, interest shall be computed monthly and deducted from payment and the balance of payment shall be applied on principal.

3. TIME OF THE ESSENCE

Time is of the essence in the performance of each and every term and provision in this agreement by Purchaser.

4. SECURITY

This contract shall stand as security of the payment of the obligations of Purchaser.

5. MAINTENANCE OF IMPROVEMENTS

All improvements on the property, including, but not limited to, buildings, trees or other improvements now on the premises, or hereafter made or placed thereon, shall be a part of the security for the performance of this contract and shall not be removed there from. Purchaser shall not commit, or suffer any other person to commit, any waste or damage to said premises or the appurtenances and shall keep the premises and all improvements in as good condition as they are now.

6. CONDITION OF IMPROVEMENTS

Purchaser agrees that the Seller has not made, nor makes any representations or warranties as to the condition of the premises, the condition of the buildings, appurtenances and fixtures locate thereon, and/or the location of the boundaries. Purchaser accepts the property in its "as-is" condition without warranty of any kind.

7. POSSESSION OF PROPERTY

Purchaser shall take possession of the property and all improvements thereon upon execution of this contract and shall continue in the peaceful enjoyment of the property so long as all payments due under the terms of this contract are timely made. Purchaser agrees to keep the property in a good state of repair and in the event of termination of this contract, Purchaser agrees to return the property to Seller in substantially the same condition as it now exists, ordinary wear and tear excepted. Seller reserves the right to inspect the property at any time with or without notice to Purchaser.

8. TAXES, INSURANCE AND ASSESSMENTS

Taxes and Assessments: During the term of this contract:

(a) Purchaser shall pay all taxes and assessments levied against the property.

(b) Seller shall pay all taxes and assessments levied against the property. In the event that Seller pays the taxes and insurance, Purchaser shall reimburse Seller for same upon 30 days notice to purchaser.

Content Insurance: Purchaser shall be solely responsible for obtaining insurance of the contents, insuring contents owned by Purchaser. Seller shall be solely responsible for obtaining insurance on all contents owned by Seller.

Liability and Hazard Insurance: Liability insurance shall be maintained by Purchaser during the term of this contract naming Seller as an additional insured, in the amount of not less than $ .

Fire, Hazard and Windstorm Insurance: Fire, hazard and windstorm insurance shall be maintained as follows:

(a) Purchaser shall obtain fire, hazard and windstorm insurance in the amount not less than $, on a policy of insurance naming Seller as additional insured.

(b) Seller shall obtain and pay for hazard, fire and windstorm insurance in an amount not less than $. In the event Seller elects this option, Purchaser shall repay the amount so paid by Seller within thirty (30) days of demand for same by Seller.

Should the Purchaser fail to pay any tax or assessment, or installment thereof, when due, or keep said buildings insured, Seller may pay the same and have the buildings insured, and the amounts thus expended shall be a lien on said premises and may be added to the balance then unpaid, or collected by Seller, in the discretion if Seller with interest until paid at the rate of the per cent per annum.

In case of any damage as a result of which said insurance proceeds are available, the Purchaser may, within sixty (60) days of said loss or damage, give to the Seller written notice of Purchaser’s election to repair or rebuild the damaged parts of the premises, in which event said insurance proceeds shall be used for such purpose.

9. DEFAULT

If the Purchaser shall fail to perform any of the covenants or conditions contained in this Agreement on or before the date on which the performance is required, the Seller shall give Purchaser, in accordance with Minnesota Statutes § 559.21, notice of default or performance, stating this Agreement will terminate sixty (60) days from the date of the Notice unless prior to the termination date the Purchaser:

(a) complies with the conditions in default as specified in the Notice;

(b) makes all payments due and owing to the seller under this Agreement through the date that payment is made;

(c) pays the costs of service of the Notice, including the reasonable costs of service by sheriff, public officer or private process server, when the costs of such service is made known to Purchaser via certified mail at least ten days prior to the date of termination;

(d) pays two percent of any amount in default at the time of service not including the final balloon payment, any taxes, assessments, mortgages;

(e) pays an amount to apply on attorneys’ fees actually expended or incurred, of $250 in the amount in default is less than $1,000, and of $500 if the amount in default is $1,000 or more, where any condition of default has existed for at least 30 days prior to the date of service of the Notice;

(f) secures from a county or district court an order that the termination of this Agreement be suspended until your claims or defenses are finally disposed of by trial, hearing or settlement.

In the event Purchaser fails to comply with the Notice, this Agreement will terminate. Purchaser will forfeit any and all payments made under the terms of this Agreement, the right to possession of the property, and the right to assert any claims or defenses against the Seller.

The parties expressly agree that in the event of termination and the Purchaser fails to vacate the premises, Seller shall have the right to obtain possession by appropriate court action.

10. DEED AND EVIDENCE OF TITLE

Upon total payment of the purchase price and any and all late charges, and other amounts due Seller, Seller agrees to deliver to Purchaser a Warranty Deed to the subject property, at Seller’s expense, free and clear of any liens or encumbrances other than taxes and assessments for the current year.

11. NOTICES

All notices required hereunder shall be deemed to have been made when deposited in the U. S. Mail, postage prepaid, certified, return receipt requested, to the Purchaser or Seller at the addresses listed below. All notices required hereunder may be sent to:

Seller:

Purchaser:

and when mailed, postage prepaid, to said address, shall be binding and conclusively presumed to be served upon said parties respectively.

12. ASSIGNMENT OR SALE

Purchaser shall not sell, assign, transfer or convey any interest in the subject property or this agreement, without first securing the written consent of the Seller.

13. PREPAYMENT

Purchaser to have the right to prepay, without penalty, the whole or any part of the balance remaining unpaid on this contract at any time before the due date.

14. ATTORNEY FEES

In the event of any default that exists for at least thirty (30) days prior to the date of service of a Termination Notice as stated in Section 9 of this Agreement, Purchaser shall pay to Seller, Seller's reasonable and actual attorneys' fees and expenses incurred by Seller in enforcement of any rights of Seller.

15. LATE PAYMENT CHARGES

If Purchaser shall fail to pay, within fifteen (15) days after due date, any installment due hereunder, Purchaser shall be required to pay an additional charge of five (5%) percent of the late installment. Such charge shall be paid to Seller at the time of payment of the past due installment.

16. CONVEYANCE OR MORTGAGE BY SELLER

The Seller reserves the right to convey, his or her interest in the above described land and such conveyance hereof shall not be a cause for rescission but such conveyance shall be subject to the terms of this Agreement. The Seller may, during the lifetime of this Agreement, place a mortgage on the premises above described, which shall be a lien on the premises, superior to the rights of the Purchaser herein, or may continue and renew any existing mortgage thereon, provided that the aggregate amount due on all outstanding mortgages shall not at any time be greater than the unpaid balance of the purchase price.

If the Seller's interest is now or hereafter encumbered by mortgage, the Seller covenants that Seller will meet the payments of principal and interest thereon as they mature and produce evidence thereof to the Purchaser upon demand. In the event the Seller shall default upon any such mortgage or land contract, the Purchaser shall have the right to do the acts or make the payments necessary to cure such default and shall be reimbursed for so doing by receiving, automatically, credit to this Agreement to apply on the payments due or to become due hereon.

17. ENTIRE AGREEMENT

This Agreement embodies and constitutes the entire understanding between the parties with respect to the transactions contemplated herein. All prior or contemporaneous agreements, understandings, representations, oral or written, are merged into this Agreement.

18. AMENDMENT – WAIVERS

This Agreement shall not be modified, or amended except by an instrument in writing signed by all parties.

No delay or failure on the part of any party hereto in exercising any right, power or privilege under this Agreement or under any other documents furnished in connection with or pursuant to this Agreement shall impair any such right, power or privilege or be construed as a waiver of any default or any acquiescence therein. No single or partial exercise of any such right, power or privilege shall preclude the further exercise of such right, power or privilege, or the exercise of any other right, power or privilege. No waiver shall be valid against any party hereto unless made in writing and signed by the party against whom enforcement of such waiver is sought and then only to the extent expressly specified therein.

19. SEVERABILITY

If any one or more of the provisions contained in this Agreement shall be held illegal or unenforceable by a court, no other provisions shall be affected by this holding. The parties intend that in the event one or more provisions of this agreement are declared invalid or unenforceable, the remaining provisions shall remain enforceable and this agreement shall be interpreted by a Court in favor of survival of all remaining provisions.

20. HEADINGS

Section headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.

21. PRONOUNS

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the person or entity may require. As used in this agreement: (1) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender, (2) words in the singular shall mean and include the plural and vice versa, and (3) the word "may" gives sole discretion without any obligation to take any action.

22. JOINT AND SEVERAL LIABILITY

All Purchasers, if more than one, covenants and agrees that their obligations and liability shall be joint and several.

23. HEIRS AND ASSIGNS

This contract shall be binding upon and to the benefit of the heirs, administrators, executors, and assigns of the parties hereto. However, nothing herein shall authorize a transfer in violation of paragraph (12).

24. RECORDING

At the request of Purchaser at the time of signing, Seller shall cause a copy of this Agreement to be recorded in the office of county recorder or registrar of titles in the county wherein property is located. The Purchaser shall pay the costs of recording. Minnesota Statutes section 507.235 imposes criminal and civil penalties for failure of Purchaser to record within four months of signing of this Agreement.

25. DISCLOSURE

Minnesota Statutes section 507.235 requires Seller, Purchaser, or current or former holder of a Seller or Purchaser’s interest, a person who collects payments under Agreement, or a person in possession of property subject to Agreement shall, on written request made by the city or county attorney of the city or county wherein property subject to Agreement is located, disclose all information known to the person relating to: (1) the identity and residence or office mailing address of the parties to Agreement; and (2) any assignment of the Agreement.

26. OTHER PROVISIONS

WITNESS THE SIGNATURES of the Parties this the day of , 20.