Land Contract Template (Page 2 of 7) in pdf

commit or suffer any other person to commit waste or, without the consent of the Seller in

writing, remove, change or demolish the improvements on the Premises in a way which may

diminish Seller’s security.

5. TAXES. The Buyer shall pay all taxes and special assessments upon the Premises which shall

become due and payable after the date of this Contract before they become subject to

penalties, and shall produce evidence of the payment to the Seller on demand. Other tax

provisions: All future tax and assessments are the responsibility of the Buyer.

6. INSURANCE. The Buyer shall obtain and keep in force fire and extended coverage

insurance in the name of the Seller covering the buildings and improvements now or

hereafter placed on the Premises with a loss payable clause or other endorsement making the

proceeds payable to the Seller and Buyer as their respective interest may appear, with

insurers satisfactory to the Seller in an amount not less than the insurable value of the

Premises, and shall deliver copies of the insurance policies to the Seller with premium paid.

7. DISPOSITION OF INSURANCE PROCEEDS. In case of loss or damage as a result of

which insurance proceeds are available in an amount sufficient to repair or rebuild the

Premises, Buyer has the right to elect to use the insurance proceeds to repair or rebuild. In

order to elect to exercise the right, Buyer must give Seller written notice of the election

within 60 days of the loss or damage. If the election is made, the insurance proceeds shall be

used for that purpose. In the event the insurance proceeds are not sufficient to repair or

rebuild the Premises, Buyer may elect to use the proceeds to repair or rebuild by giving

written notice of the election within 60 days of the loss or damage, and along with the notice,

deposit with Seller an amount sufficient to provide for full payment of the repair and

rebuilding. If the election, and deposit if required, are not timely made, the insurance

proceeds shall be applied on this Contract. If the insurance proceeds exceed the amount

required for repairing and rebuilding, the excess shall be applied first toward the satisfaction

of any existing defaults under the terms of this Contract, and then as a prepayment upon the

principal balance owing, without penalty, notwithstanding any other provision to the

contrary. The prepayment shall not defer the time for payment of any remaining payments

required under paragraph 2. Any surplus of proceeds in excess of the balance owing on this

Contract, shall be paid to Buyer.

8. INSURANCE AND/OR TAX DEFAULT. In case of failure of the Buyer to obtain, maintain,

or deliver policies of insurance or to pay taxes or special assessments payable by the Buyer,

the Seller may:

(a) Pay the insurance premium, taxes or special assessments and add them to the unpaid

balance on the contract, or

(b) Pay the insurance premiums, taxes or special assessments and treat Buyer’s failure to

pay them as a default, or

failure to pay them as a default.

Land Contract Template Page 2