Land Contract (Page 3 of 5) in pdf

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.

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

Encumbrances on

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

Seller’s Title

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

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

Insurance

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.

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

Assignment by Purchaser

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.

Land Contract Page 3

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