Contract for Deed (Land Contract)

CONTRACT FOR DEED (BOND FOR DEED / INSTALLMENT LAND CONTRACT)

(Connecticut)

TABLE OF CONTENTS

1. Document Header and Parties
2. Definitions
3. Property; Legal Description
4. Purchase Price; Down Payment; Installment Terms
5. Interest; Amortization; Balloon; Prepayment
6. Legal Title; Escrow of Deed; Delivery at Payoff
7. Possession; Taxes, Insurance, and Maintenance
8. Buyer's Equitable Interest; Recording
9. Default and Remedies (Connecticut Judicial / Strict Foreclosure Rule)
10. Title; Marketability; Title Insurance
11. Risk of Loss; Condemnation
12. Assignment; Due-on-Sale (Garn–St. Germain)
13. Disclosures (Lead-Based Paint; Property Condition)
14. General Provisions
15. Execution; Witnesses; Notarial Acknowledgment
16. Exhibits and Schedules

1. DOCUMENT HEADER AND PARTIES

This Contract for Deed (also known as a Bond for Deed or Installment Land Contract, this "Contract") is made as of [__/__/____] (the "Effective Date") by and between:

a. Seller: [SELLER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [SELLER ADDRESS] ("Seller"); and

b. Buyer: [BUYER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [BUYER ADDRESS] ("Buyer").

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

Recitals

A. Seller is the fee simple owner of the real property described in Exhibit A (the "Property").

B. Buyer desires to purchase, and Seller desires to sell, the Property on an installment basis under which Seller retains legal title as security until the Purchase Price is paid in full, at which time Seller will convey title by deed.

C. The Parties acknowledge that Connecticut is a judicial / strict-foreclosure state and that this Contract may be treated as an equitable mortgage subject to judicial foreclosure.

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

2. DEFINITIONS

"Business Day" – any day other than Saturday, Sunday, or a Connecticut legal holiday.

"Closing" / "Final Closing" – delivery of the Deed upon payment in full of all amounts due under this Contract.

"Deed" – a [SELECT: Warranty Deed / Quitclaim Deed] in recordable form conveying the Property to Buyer subject only to the Permitted Exceptions.

"Default Rate" – [____]% per annum or the maximum rate permitted by Connecticut law, whichever is less.

"Equity" – the difference between the fair market value of the Property and the Unpaid Balance, plus the value of Buyer's improvements.

"Permitted Exceptions" – the matters listed in Exhibit B.

"Purchase Price" – the amount set forth in Section 4.1.

"Unpaid Balance" – the principal portion of the Purchase Price remaining unpaid at any time, together with accrued interest and other charges.

3. PROPERTY; LEGAL DESCRIPTION

3.1 Property. Seller agrees to sell and Buyer agrees to buy the real property located at [PROPERTY ADDRESS], [TOWN], [COUNTY] County, Connecticut, legally described in Exhibit A, together with all improvements, fixtures, easements, and appurtenances.

3.2 Personal Property Included. The following personal property is included, free of liens: [LIST OR "None"].

3.3 Condition; "As-Is." Except as expressly stated herein and in the disclosures attached, Buyer accepts the Property in its present "AS-IS" condition, subject to Buyer's inspection rights in Section 13.

4. PURCHASE PRICE; DOWN PAYMENT; INSTALLMENT TERMS

4.1 Purchase Price. The total Purchase Price is $[____________].

4.2 Down Payment. Buyer shall pay a down payment of $[____________] on or before [__/__/____].

4.3 Financed Amount. The amount financed (Purchase Price less down payment) is $[____________] (the "Financed Amount").

4.4 Installment Payments. Buyer shall pay the Financed Amount, with interest, in installments as follows:

4.5 Application of Payments. Payments are applied first to late charges and costs, then to accrued interest, then to principal.

4.6 Maximum Lawful Rate. No provision shall require interest exceeding the maximum permitted by Connecticut law; any excess shall be applied to principal or refunded.

5. INTEREST; AMORTIZATION; BALLOON; PREPAYMENT

5.1 Interest. Interest accrues on the Unpaid Balance at the rate stated in Section 4.4 from the Effective Date.

5.2 Balloon Disclosure. [IF APPLICABLE] THIS CONTRACT CONTAINS A BALLOON PAYMENT. A SUBSTANTIAL FINAL PAYMENT OF $[__________] WILL BE DUE ON [__/__/____]. BUYER MAY NEED TO REFINANCE OR OBTAIN OTHER FUNDS TO PAY THE BALLOON.

5.3 Prepayment. Buyer may prepay all or part of the Unpaid Balance at any time [SELECT: without penalty / subject to a prepayment charge of [____]%]. Partial prepayments are applied to principal and do not postpone any scheduled payment.

5.4 Amortization Statement. Upon Buyer's written request, Seller shall provide a statement of the Unpaid Balance and amounts applied to principal and interest.

6. LEGAL TITLE; ESCROW OF DEED; DELIVERY AT PAYOFF

6.1 Retention of Legal Title. Seller retains legal title to the Property as security until Buyer has paid the Purchase Price and performed all obligations in full. Buyer holds equitable title and the right of possession.

6.2 Escrow of Deed (Optional). [SELECT ONE]
☐ Seller shall deposit an executed, recordable Deed with [ESCROW AGENT/ATTORNEY] to be held in escrow and delivered to Buyer upon payment in full.
☐ The Deed shall be delivered by Seller directly upon payment in full; no deed is escrowed.

6.3 Delivery at Payoff. Within [____] Business Days after Buyer pays all amounts due, Seller shall execute and deliver the Deed and record a release of this Contract on the [TOWN] land records at [SELECT: Seller's / Buyer's] expense.

7. POSSESSION; TAXES, INSURANCE, AND MAINTENANCE

7.1 Possession. Buyer is entitled to possession on [__/__/____].

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

7.3 Insurance. Buyer shall keep the improvements insured against fire and other casualty for not less than [SELECT: replacement cost / the Unpaid Balance], naming Seller as an additional insured / loss payee as its interest appears.

7.4 Maintenance. Buyer shall maintain the Property in good repair, commit no waste, and comply with all laws and any association requirements.

7.5 Common Interest Community. [IF APPLICABLE] Buyer shall pay all association assessments and comply with the governing documents; Seller has delivered the disclosures required by the Connecticut Common Interest Ownership Act (Conn. Gen. Stat. ch. 828).

8. BUYER'S EQUITABLE INTEREST; RECORDING

8.1 Recording. This Contract (or a Memorandum of Contract for Deed in the form of Exhibit C) shall be recorded on the land records of the Town of [TOWN], Connecticut, pursuant to Conn. Gen. Stat. § 47-10. Under § 47-10, a conveyance is not effectual to hold land against any person but the grantor and the grantor's heirs unless recorded; recording protects Buyer's interest against subsequent purchasers and creditors of Seller.

8.2 Conveyance Tax. Any Connecticut real estate conveyance tax (Conn. Gen. Stat. ch. 223) and recording fees due on this instrument or the Deed shall be paid by [SELECT: Buyer / Seller] as required by law.

8.3 No Encumbrance by Seller. Seller shall not further encumber or convey the Property in a manner impairing Buyer's interest, and shall apply Buyer's payments to keep any underlying loan current (see Section 12.3).

9. DEFAULT AND REMEDIES (CONNECTICUT JUDICIAL / STRICT FORECLOSURE RULE)

9.1 Events of Default. Buyer is in default if Buyer (a) fails to pay any installment within [____] days after its due date; (b) fails to pay taxes or insurance; (c) commits waste; or (d) breaches any other material covenant and fails to cure within [____] days after written notice.

9.2 Notice and Right to Cure. Seller shall give Buyer written notice of default specifying the default and a cure period of not less than [30] days. Buyer may cure by paying all past-due amounts plus late charges and Seller's reasonable costs.

9.3 CONNECTICUT REMEDY — JUDICIAL / STRICT FORECLOSURE. The Parties acknowledge that Connecticut requires a judicial foreclosure of mortgages and that this Contract, where Buyer holds equitable title and has acquired Equity, is treated as an equitable mortgage. On an uncured default, Seller's remedy is to commence a foreclosure action in the Connecticut Superior Court:
a. Strict Foreclosure (Conn. Gen. Stat. ch. 846): the court sets "law days"; if Buyer fails to redeem by paying the Unpaid Balance in full on or before its law day, Buyer's interest is extinguished and title vests in Seller by operation of law, with no auction. This is the default method where the Property has no Equity.
b. Foreclosure by Sale (Conn. Gen. Stat. § 49-24): where the Property has Equity, the court orders a committee sale by auction; sale proceeds are applied to the debt and costs, with any surplus paid to Buyer.
c. Mediation/Protections: Residential matters are subject to foreclosure mediation and protections under Conn. Gen. Stat. § 49-31e and related provisions.

9.4 Deficiency. Seller may seek a deficiency judgment as permitted by Conn. Gen. Stat. § 49-14 (after strict foreclosure, motion within 30 days of title vesting) or § 49-28 (after foreclosure by sale), subject to statutory procedure.

9.5 No Self-Help Forfeiture. The Parties acknowledge that, where Buyer holds equitable title, Seller may not declare a summary forfeiture and retake possession without judicial foreclosure.

9.6 Cumulative Remedies; Attorneys' Fees. Remedies are cumulative to the extent permitted by law. The prevailing Party is entitled to reasonable attorneys' fees and costs as allowed by law.

10. TITLE; MARKETABILITY; TITLE INSURANCE

10.1 Marketable Title at Payoff. At Final Closing, Seller shall convey marketable, insurable fee simple title subject only to the Permitted Exceptions.

10.2 Title Insurance. [SELECT: Seller / Buyer] shall provide, at [ITS] expense, an owner's title insurance commitment from [TITLE COMPANY] showing title vested in Seller as of the Effective Date, and an owner's policy issued to Buyer at Final Closing.

10.3 Seller's Existing Liens. Seller represents the Property is encumbered only by: [LIST or "none"]. Seller shall not allow any superior lien to go into default.

11. RISK OF LOSS; CONDEMNATION

11.1 Risk of Loss. From the possession date, risk of loss passes to Buyer. Insurance proceeds shall be applied, at Buyer's election and subject to Seller's security interest, to restoration or to the Unpaid Balance.

11.2 Condemnation. Any condemnation award shall be applied first to the Unpaid Balance, with the balance to Buyer, unless the Parties agree to restoration.

12. ASSIGNMENT; DUE-ON-SALE (GARN–ST. GERMAIN)

12.1 Assignment by Buyer. Buyer may not assign this Contract without Seller's prior written consent, which shall not be unreasonably withheld.

12.2 Assignment by Seller. Seller may assign its rights to payment subject to Buyer's rights hereunder.

12.3 Due-on-Sale Warning (Garn–St. Germain). If the Property is subject to an existing mortgage, entering into this Contract may trigger a "due-on-sale" clause permitting the lender to accelerate under the federal Garn–St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3). Seller represents that [SELECT: there is no underlying loan / the lender has consented / Buyer assumes this risk]. Seller shall apply Buyer's payments to keep any underlying loan current.

13. DISCLOSURES (LEAD-BASED PAINT; PROPERTY CONDITION)

13.1 Lead-Based Paint (Pre-1978 Housing). If the dwelling was built before 1978, federal law (42 U.S.C. § 4852d) requires Seller to disclose known lead-based paint and hazards, provide available records, deliver the EPA pamphlet "Protect Your Family From Lead in Your Home," and allow Buyer a 10-day inspection opportunity. See Exhibit D. ☐ Not applicable (built 1978 or later). Connecticut also imposes lead-paint disclosure obligations for residential property.

13.2 Residential Property Condition Report. Seller has delivered the Connecticut Residential Property Condition Disclosure Report required by Conn. Gen. Stat. § 20-327b (or paid the statutory credit in lieu thereof).

13.3 Inspection. Buyer [SELECT: has inspected / has [____] days to inspect] the Property and accepts it subject to such inspection.

14. GENERAL PROVISIONS

14.1 Governing Law. This Contract is governed by the laws of the State of Connecticut.

14.2 Forum. Exclusive venue lies in the Superior Court for the Judicial District of [DISTRICT], Connecticut.

14.3 Notices. Notices shall be in writing and delivered by hand, certified mail (return receipt requested), or nationally recognized overnight courier to the addresses in Section 1.

14.4 Time of the Essence. Time is of the essence as to all payment obligations, subject to the notice and cure rights and the Connecticut foreclosure rule in Section 9.

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

14.6 Severability. If any provision is held invalid, the remainder shall remain enforceable.

14.7 Counterparts; Electronic Signatures. This Contract may be executed in counterparts and by electronic signature.

14.8 Successors and Assigns. This Contract binds and benefits the Parties and their permitted successors and assigns.

15. EXECUTION; WITNESSES; NOTARIAL ACKNOWLEDGMENT

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

SELLER:
________________________________________
[SELLER NAME]
Date: [__/__/____]

Witness 1: _______________________ Print: _______________________
Witness 2: _______________________ Print: _______________________

BUYER:
________________________________________
[BUYER NAME]
Date: [__/__/____]

Witness 1: _______________________ Print: _______________________
Witness 2: _______________________ Print: _______________________

Notary Acknowledgment

STATE OF CONNECTICUT
COUNTY OF [____________]

On this [____] day of [MONTH], [YEAR], before me personally appeared [NAME(S)], known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

________________________________________
Notary Public / Commissioner of the Superior Court
My Commission Expires: ___________
[SEAL]

16. EXHIBITS AND SCHEDULES

• Exhibit A – Legal Description of the Property
• Exhibit B – Permitted Exceptions
• Exhibit C – Memorandum of Contract for Deed (for recording)
• Exhibit D – Lead-Based Paint Disclosure (pre-1978 housing)
• Exhibit E – Residential Property Condition Disclosure Report
• Schedule 1 – Amortization Schedule

Sources and References

• Conn. Gen. Stat. § 47-10 (conveyance to be recorded) — https://law.justia.com/codes/connecticut/title-47/chapter-821/section-47-10/
• Conn. Gen. Stat. § 49-24 (foreclosure by sale); ch. 846 — https://www.cga.ct.gov/current/pub/chap_846.htm
• Conn. Gen. Stat. § 49-14 (deficiency after strict foreclosure) — https://www.cga.ct.gov/current/pub/chap_846.htm
• Conn. Gen. Stat. § 47-5 (execution of conveyances) — https://www.cga.ct.gov/current/pub/chap_821.htm
• Conn. Gen. Stat. § 20-327b (Residential Property Condition Report) — https://www.cga.ct.gov/
• Garn–St. Germain Act, 12 U.S.C. § 1701j-3 — https://www.law.cornell.edu/uscode/text/12/1701j-3
• Lead-Based Paint, 42 U.S.C. § 4852d — https://www.law.cornell.edu/uscode/text/42/4852d