Contract for Deed (Land Contract)

CONTRACT FOR DEED (LAND CONTRACT)

(State of Alaska)

TABLE OF CONTENTS

1. Parties
2. Recitals
3. Property and Legal Description
4. Purchase Price and Payment Terms
5. Interest, Amortization, and Balloon
6. Prepayment
7. Possession
8. Taxes, Insurance, and Maintenance
9. Title; Custody of the Deed; Conveyance at Payoff
10. Recording of Contract / Memorandum
11. Existing Encumbrances; Due-on-Sale / Wrap Warning
12. Risk of Loss; Casualty; Condemnation
13. Default and Remedies (Alaska)
14. Assignment
15. Disclosures
16. General Provisions
17. Signatures and Acknowledgment
18. Exhibits

1. PARTIES

THIS CONTRACT FOR DEED (this "Contract") is made and entered into as of [__/__/____] (the "Effective Date") by and between:

• [SELLER LEGAL NAME], of [SELLER ADDRESS] (the "Seller" or "Vendor"); and
• [BUYER LEGAL NAME], of [BUYER ADDRESS] (the "Buyer" or "Vendee").

Seller and Buyer are each a "Party" and together the "Parties."

2. RECITALS

A. Seller owns legal title to the real property described in Section 3 (the "Property").

B. Buyer desires to purchase, and Seller to sell, the Property under an installment land contract whereby Seller retains legal title as security until the full Purchase Price is paid, and Buyer takes possession and equitable title in the meantime.

C. The Parties intend this Contract to operate as both a contract of sale and a security instrument under Alaska law.

NOW, THEREFORE, in consideration of the mutual covenants below and other valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

3. PROPERTY AND LEGAL DESCRIPTION

3.1 Property. Seller agrees to sell and Buyer agrees to buy the real property commonly known as [STREET ADDRESS, CITY, ALASKA, ZIP], together with all improvements, fixtures, easements, and appurtenances, more particularly described as:

3.2 Personal Property Included. [________________________________] (if none, state "None").

3.3 Condition. Except as expressly stated herein and in required disclosures, the Property is sold "AS IS, WHERE IS, WITH ALL FAULTS."

4. PURCHASE PRICE AND PAYMENT TERMS

4.1 Purchase Price. The total purchase price is $[____________] (the "Purchase Price").

4.2 Payment Schedule.

4.3 Application of Payments. Each payment applies first to accrued interest, then to principal, then to advances made by Seller (taxes, insurance, or to protect title).

4.4 Late Charge. A late charge of $[____] (or [____]% of the overdue installment) applies to any payment more than [____] days late, to the extent permitted by Alaska law.

5. INTEREST, AMORTIZATION, AND BALLOON

5.1 Interest Rate. Interest accrues on the unpaid principal at [____]% per annum.

5.2 Amortization. The balance is amortized over [____] months/years.

5.3 Balloon Payment. ☐ No balloon payment. ☐ A balloon payment of approximately $[____________] is due on [__/__/____] (the "Maturity Date"). Buyer must refinance or pay this amount in full on the Maturity Date.

6. PREPAYMENT

Buyer may prepay all or any part of the unpaid principal at any time ☐ without penalty ☐ subject to a prepayment charge of [________________].

7. POSSESSION

Buyer is entitled to possession on [__/__/____] and retains possession so long as Buyer is not in default, subject to this Contract and the existing encumbrances disclosed in Exhibit B.

8. TAXES, INSURANCE, AND MAINTENANCE

8.1 Taxes and Assessments. Buyer shall pay, before delinquency, all real property taxes and assessments accruing on or after the possession date and provide proof on request.

8.2 Insurance. Buyer shall maintain hazard insurance for not less than full replacement value, naming Seller as additional insured / loss payee as its interest may appear, and deliver evidence of coverage.

8.3 Maintenance. Buyer shall keep the Property in good repair, commit no waste, and comply with all laws and recorded restrictions.

8.4 Seller Advances. Sums advanced by Seller to protect title (taxes, insurance, senior-loan payments) become additional principal at the contract rate and are immediately due.

9. TITLE; CUSTODY OF THE DEED; CONVEYANCE AT PAYOFF

9.1 Retention of Legal Title. Seller retains legal title as security until the Purchase Price and all other sums are paid in full. Buyer holds equitable title.

9.2 Form of Deed. Upon payment in full, Seller shall convey marketable title by [Statutory Warranty Deed], free of liens other than the Permitted Exceptions in Exhibit B and matters created or suffered by Buyer.

9.3 Deed in Escrow (Optional). ☐ The Parties deposit an executed, recordable deed with [ESCROW AGENT NAME/ADDRESS], released to Buyer upon payment in full and to Seller upon a completed default termination, per the escrow agreement (Exhibit C). ☐ No deed escrow; Seller delivers the deed at payoff.

9.4 Marketable Title / Title Insurance. ☐ Seller shall provide an owner's title insurance commitment within [____] days. ☐ Buyer waives a commitment but may obtain a policy at Buyer's expense.

10. RECORDING OF CONTRACT / MEMORANDUM

10.1 Recording. Within [____] days after the Effective Date, the Parties shall record ☐ this Contract ☐ a Memorandum of Contract for Deed (Exhibit D) in the [____________] Recording District, Department of Natural Resources, under AS 40.17.030. The instrument must be acknowledged as required by AS 34.15.150.

10.2 Effect. Recording gives constructive notice of Buyer's equitable interest under AS 40.17.080 and protects Buyer against subsequent purchasers and creditors of Seller.

10.3 Costs. Recording fees are paid by [Buyer / Seller].

11. EXISTING ENCUMBRANCES; DUE-ON-SALE / WRAP WARNING

11.1 Existing Loans. The Property ☐ is ☐ is not subject to an existing deed of trust / mortgage in favor of [LENDER] with an approximate balance of $[__________] (a "wrap" arrangement).

11.2 Garn-St. Germain Warning. Buyer and Seller acknowledge that most security instruments contain a due-on-sale clause and that, under the Garn-St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3), transfer by installment land contract may permit the existing lender to accelerate the underlying loan. Seller remains responsible for keeping any senior loan current, and Buyer's payments do not relieve Seller of that obligation. Consult counsel and, where possible, the existing lender before closing.

12. RISK OF LOSS; CASUALTY; CONDEMNATION

12.1 Risk of Loss. From the possession date, risk of loss passes to Buyer, who shall maintain insurance under Section 8.2.

12.2 Casualty. Insurance proceeds shall be applied, at the Parties' written election, to restoration or to the unpaid balance.

12.3 Condemnation. A condemnation award shall be applied first to the unpaid balance, with the surplus (if any) to Buyer.

13. DEFAULT AND REMEDIES (ALASKA)

13.1 Events of Default. Buyer is in default if Buyer (a) fails to pay any installment or other sum when due and the failure continues beyond the cure period below; (b) fails to maintain insurance or pay taxes; (c) commits waste; or (d) breaches any other material covenant and fails to cure within [____] days after written notice.

13.2 Notice and Cure / Grace Period. Before exercising any remedy, Seller shall give Buyer written notice of default specifying the breach and the amount required to cure, and Buyer shall have not less than [30] days to cure and reinstate this Contract. Where enforcement proceeds through the deed-of-trust remedy in Section 13.3(c), AS 34.20.070(b) and (e) permit cure of a payment default before the sale by paying the sum then in default plus the foreclosure fees and costs actually incurred. If two or more prior notices of default under the same deed of trust were recorded and those defaults were cured, the trustee may elect to refuse cure and continue the sale.

13.3 Seller's Remedies. Upon an uncured default, Seller may, subject to Section 13.4:

a. accelerate and declare the entire unpaid balance immediately due;
b. sue for the unpaid installments or for the balance due (action on the debt);
c. if the Parties have executed and recorded a deed of trust securing this Contract, direct the trustee to conduct a nonjudicial trustee's sale under AS 34.20.070 and AS 34.20.080 — the trustee records a notice of default not less than 30 days after the default and not less than 90 days before the sale, mails copies as required, and sells at public auction, with proceeds distributed per AS 34.20.080(f); or
d. pursue judicial foreclosure of Seller's interest under AS 09.45.170 et seq.

13.4 Anti-Forfeiture / Buyer Equity. Alaska equity disfavors forfeiture of a purchaser's interest under a land-sale contract and may refuse even an express forfeiture when equity and justice require. The Parties therefore intend Seller's retained interest to secure Buyer's payment obligation and intend Buyer's interest to be terminated through the AS 34.20.070 nonjudicial process (if a deed of trust secures this Contract) or judicial foreclosure, not by automatic repossession or retention of all prior payments. See Allen v. Vaughn, 161 P.3d 1209, 1213–15 (Alaska 2007).

13.5 Application of Sale Proceeds. For a trustee's sale, AS 34.20.080(f) distributes cash proceeds first to the beneficiary until the full amount owed under the deed of trust is paid, next to holders of subordinate recorded interests in priority order, and then to the trustor or the trustor's recorded successor in interest.

13.6 Election of Remedies; No Waiver. If the deed of trust is judicially foreclosed, or if Seller sues on the secured note and obtains a judgment, AS 34.20.070(a) bars Seller from later using that section's nonjudicial remedy. Subject to that election rule, acceptance of a late or partial payment does not waive a default unless Seller agrees otherwise in writing.

14. ASSIGNMENT

14.1 Buyer may not assign this Contract or its equitable interest without Seller's prior written consent, not unreasonably withheld. Any permitted assignee takes subject to this Contract.

14.2 Seller may assign its rights (including the right to receive payments), subject to Buyer's rights hereunder.

15. DISCLOSURES

15.1 Lead-Based Paint (Covered Target Housing). Before Buyer is obligated under this Contract, Seller must complete the current federal process for covered target housing: provide the EPA lead-hazard pamphlet; disclose known lead-based paint and known lead-based-paint hazards; provide every available lead-hazard evaluation report; attach the large-type Lead Warning Statement and Buyer-signed acknowledgments to this Contract; and allow Buyer a 10-day risk-assessment or inspection opportunity unless the parties mutually agree to a different period. ☐ Federal coverage and any exemption reviewed ☐ Current warning/disclosure attachment completed ☐ Pamphlet and available reports delivered ☐ Inspection period completed, waived, or changed by mutual agreement.

15.2 Property Condition Disclosure. Seller shall complete and deliver the Alaska residential real property transfer disclosure statement to the extent required by Alaska law (AS 34.70) for transfers of one-to-four-unit residential property. ☐ Disclosure attached ☐ Statutory exemption applies: [____________].

15.3 Other Disclosures. [Flood zone, HOA, well/septic, and any other required disclosures: ________________________________].

16. GENERAL PROVISIONS

16.1 Governing Law. This Contract is governed by the laws of the State of Alaska.

16.2 Time of the Essence. Time is of the essence, subject to the notice and cure rights in Section 13.

16.3 Notices. Notices must be in writing and delivered by personal delivery, certified U.S. mail (return receipt requested), or nationally recognized overnight courier to the addresses in Section 1.

16.4 Entire Agreement; Amendment. This Contract and its Exhibits are the entire agreement and may be amended only in a writing signed by both Parties.

16.5 Severability. If any provision is held invalid, the remainder remains in effect.

16.6 Attorney's Fees. The prevailing Party in any action arising under this Contract is entitled to reasonable attorney's fees and costs, as permitted by law and Alaska Civil Rule 82.

16.7 Counterparts; Electronic Signatures. This Contract may be executed in counterparts and by electronic signature, each deemed an original.

16.8 Successors. This Contract binds and benefits the Parties and their heirs, successors, and permitted assigns.

17. SIGNATURES AND ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date.

SELLER:

Signature: [________________________________] Date: [__/__/____]
Printed Name: [________________________________]

BUYER:

Signature: [________________________________] Date: [__/__/____]
Printed Name: [________________________________]

Acknowledgment (for recording — AS 34.15.150)

State of Alaska
[____________________] Judicial District

This instrument was acknowledged before me on [__/__/____] by [NAME(S)].

[________________________________]
Notary Public in and for Alaska
My commission expires: [__/__/____]

18. EXHIBITS

• Exhibit A — Legal Description of the Property
• Exhibit B — Permitted Exceptions / Existing Encumbrances
• Exhibit C — Deed Escrow Agreement (if applicable)
• Exhibit D — Memorandum of Contract for Deed (for recording)

Sources and References

• AS 34.15.010 — Manner of executing conveyances: https://law.justia.com/codes/alaska/title-34/chapter-15/
• AS 34.20.070–.080 — Sale by trustee; public auction and distribution: https://www.akleg.gov/basis/statutes.asp?media=print&secStart=34.20.070&secEnd=34.20.080
• AS 09.45.170–.220 — Judicial foreclosure of lien: https://www.akleg.gov/basis/statutes.asp?media=print&secStart=09.45.170&secEnd=09.45.220
• Allen v. Vaughn, 161 P.3d 1209 (Alaska 2007): https://govt.westlaw.com/akcases/Document/I537f1c0820b911dc8471eea21d4a0625?viewType=FullText
• AS 40.17.030 / .080 — Recording of instruments; constructive notice: https://law.justia.com/codes/alaska/title-40/chapter-17/
• AS 45.45.010 — Legal rate of interest / usury: https://law.justia.com/codes/alaska/title-45/chapter-45/
• Garn-St. Germain Act, 12 U.S.C. § 1701j-3: https://www.law.cornell.edu/uscode/text/12/1701j-3
• Lead-Based Paint disclosure, 42 U.S.C. § 4852d: https://www.law.cornell.edu/uscode/text/42/4852d