Land Contract Template (Page 3 of 7) in pdf

9. SELLER’S RIGHT TO MORTGAGE. Seller’s right to place a mortgage on the Premises, or

renew or amend any existing mortgage, is subject to the following limitations:

(a) The aggregate amount due on all outstanding mortgages shall not, at any time, be

greater than the unpaid principal of this Contract;

(b) The aggregate payments of principal and interest required in any one year under the

new or renewal mortgage or mortgages shall not exceed those required under this

Contract;

length of this Contract;

(d) The Seller shall give to the Buyer written notice of the execution of any mortgage or

renewal, containing the name and address of the mortgagee, the amount and rate of

interest on the mortgage, the due date of payments and maturity of the principal;

(e) The Seller covenants to meet the payment of principal and interest as they mature on

any mortgage now or hereafter placed upon the Premises and produce evidence of

payment to the Buyer on demand; and

(f) In case the Seller shall default upon any mortgage, the Buyer shall have the right to

do the acts or make the payments necessary to cure the default and shall be

reimbursed be receiving credit to apply on the payments due or to become due on this

Contract.

When the Contract payments have reduced the amount due to the amount of the mortgage

indebtedness, the Buyer shall be entitled to demand and receive the deed hereinafter

mentioned, subject to the mortgage indebtedness which the Buyer shall assume and agree to

pay; provided that the mortgage by its terms does not prohibit assumption.

10. SELLER TO PERFORM PRIOR LAND CONTRACT. If, at the time this Contract is

executed, the Seller is purchasing the Premises on a land contract, the Seller covenants and

agrees to meet all obligations of that contract as they mature and produce evidence thereof to

the Buyers on demand. If the Seller shall default on any prior land contract obligations, the

Buyer may cure the default and any payments by the Buyer shall be credited on the sums first

due on this Contract.

Whenever the sum due and owing on this Contract is reduced to the amount owing upon the

prior land contract by which the Seller is purchasing the Premises, and if the Buyer is not in

default, the Buyer shall be entitled to demand and receive an assignment of Seller’s right,

title, and interest in and to the prior land contract, provided that the Buyer shall assume and

pay the prior land contract, and provided further that the prior land contract does not prohibit

assignment.

11. ENFORCEMENT ON DEFAULT. If the Buyer shall fail to perform any of the covenants or

conditions contained in this Contract on or before the date of which the performance is

required, the Seller may:

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