Contract for Deed (Land Contract)

CONTRACT FOR DEED (LAND CONTRACT / BOND FOR TITLE)

State of Georgia — Installment Sale with Retained Legal Title

1. PARTIES

This Contract for Deed (also known in Georgia as a "Bond for Title," "Land Contract," or "Installment Land Sale Contract," and referred to herein as this "Contract") is made and entered into on [__/__/____] by and between:

SELLER: [________________________________], whose address is [________________________________] ("Seller"); and

BUYER: [________________________________], whose address is [________________________________] ("Buyer").

Seller and Buyer are referred to collectively as the "Parties."

2. PROPERTY AND LEGAL DESCRIPTION

Seller agrees to sell and Buyer agrees to buy, on the installment terms set out below, the real property located in the County of [________________], State of Georgia, commonly known as:

Street Address: [________________________________]

Tax Parcel / Map No.: [________________________________]

Legal Description: (insert full legal description from the current deed or attach as Exhibit A)

[____________________________________________________________]

together with all improvements, fixtures, easements, rights, and appurtenances (the "Property").

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

3.1 Application of Payments. Payments shall be applied first to accrued late charges, then to accrued interest, then to principal.

3.2 Balloon Payment Disclosure. ☐ This Contract requires a balloon payment as shown above. Buyer acknowledges that a large lump-sum balance of $[________________] will be due on the maturity date and that Buyer may need to obtain refinancing to pay it.

3.3 Place of Payment. All payments shall be made to Seller at the address in Section 1, or to such other place or escrow/collection agent as Seller designates in writing.

3.4 Interest Rate Compliance. The interest rate shall not exceed the maximum rate permitted under Georgia law (O.C.G.A. Title 7, Chapter 4).

4. TITLE; DEED HELD PENDING PAYOFF; ESCROW

4.1 Retention of Legal Title. Seller shall retain legal title to the Property until Buyer has paid the Purchase Price in full and performed all obligations under this Contract. Buyer holds equitable title and is entitled to possession as provided herein. In Georgia this arrangement operates as a bond for title.

4.2 Delivery of Deed at Payoff. Upon Buyer's full payment and performance, Seller shall execute and deliver to Buyer a [General Warranty Deed / Limited (Special) Warranty Deed] conveying marketable, fee-simple title, subject only to the Permitted Encumbrances listed on Exhibit B.

4.3 Escrow of Deed (Optional). ☐ The Parties elect to deposit an executed deed, together with these instructions, with [escrow agent / closing attorney] to be released to Buyer upon Seller's written confirmation (or escrow agent's verification) that the Purchase Price has been paid in full.

4.4 Title Insurance. ☐ Buyer may obtain, at Buyer's expense, an owner's title insurance policy. Seller represents that, as of the date of this Contract, Seller holds title subject only to the Permitted Encumbrances.

5. RECORDING

5.1 Recording in Georgia. Under O.C.G.A. § 44-2-6, every bond for title, contract to sell or convey realty, and assignment of realty may be filed and recorded in the office of the Clerk of the Superior Court of the county where the land is located. From the date of filing, recording is notice of the interest and equity of the holder. An unrecorded contract loses priority to a later instrument from the same vendor that is recorded first and taken without notice.

5.2 Buyer Protection. ☐ Buyer SHOULD record this Contract (or a memorandum of it) promptly to protect Buyer's equitable interest against subsequent liens, transfers, and judgments against Seller.

5.3 Intangible Recording Tax / Transfer Tax. If this Contract or an associated note is treated as a long-term note secured by real estate, Georgia intangible recording tax of $1.50 per $500 of the face amount (capped at $25,000) may apply under O.C.G.A. § 48-6-61, payable within 90 days. Real estate transfer tax under O.C.G.A. § 48-6-1 may apply when the final deed is recorded.

6. POSSESSION

Buyer shall be entitled to possession of the Property on [__/__/____] and shall maintain possession so long as Buyer is not in default. Possession does not transfer legal title.

7. TAXES, INSURANCE, AND MAINTENANCE

7.1 Property Taxes. ☐ Buyer shall pay all real property taxes and assessments directly when due. ☐ Buyer shall pay taxes to Seller in escrow with each installment.

7.2 Insurance. Buyer shall keep the Property insured against fire and casualty for not less than $[________________], naming Seller as an additional insured / loss payee as Seller's interest appears. Buyer shall provide proof of coverage on request.

7.3 Maintenance. Buyer shall keep the Property in good repair, shall not commit waste, and shall comply with all applicable laws, codes, and ordinances.

7.4 Utilities. Buyer shall pay all utility charges from the date of possession.

8. DEFAULT AND REMEDIES

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

8.2 Grace Period / Notice and Cure. Seller shall give Buyer written notice of default and a period of [____] days (not less than the period stated in the note, if any) to cure by paying all past-due amounts plus late charges.

8.3 Seller's Remedies — Georgia Bond-for-Title Rule. Upon an uncured default, Seller may pursue the remedies available under Georgia law, which depend on the equity Buyer has accumulated:

(a) Forfeiture / Termination + Dispossessory. Where Buyer holds little or no equity, Seller may declare the Contract terminated, retain payments as agreed liquidated damages/rent for use and occupancy (to the extent enforceable), and recover possession through a dispossessory proceeding. Georgia courts will not enforce a forfeiture that operates as an unconscionable penalty; a time-is-of-the-essence clause and clear forfeiture language are required, and equity may relieve against forfeiture.

(b) Judicial Foreclosure of the Buyer's Equity / Action for the Price. Where Buyer has accumulated substantial equity, a court may treat the bond for title as a security arrangement and require Seller to foreclose Buyer's equitable interest (an equitable/judicial foreclosure or sale) rather than allow an outright forfeiture, so that Buyer's equity is protected. Seller may alternatively sue for the unpaid balance or for specific performance.

8.4 Acceleration. Upon an uncured default, Seller may, to the extent permitted by law and this Contract, declare the entire unpaid balance immediately due and payable.

8.5 Buyer's Right to Reinstate / Redeem. Buyer may reinstate by curing the default within the grace period, or redeem by paying the full balance and Seller's reasonable costs at any time before the Contract is terminated or a foreclosure sale is consummated.

8.6 Cumulative Remedies; Attorney's Fees. Remedies are cumulative. The prevailing party in any enforcement action may recover reasonable attorney's fees and costs to the extent permitted by law.

9. PREPAYMENT

Buyer may prepay all or any part of the unpaid balance at any time ☐ without penalty / ☐ subject to the following prepayment terms: [________________________________]. Prepayments are applied to principal.

10. RISK OF LOSS

Risk of loss or damage to the Property shall be on [Buyer / Seller] during the term. If the Property is materially damaged or destroyed, the Parties shall apply insurance proceeds to restoration or to the unpaid balance as provided in [Section 7.2 / a separate written agreement].

11. ASSIGNMENT

11.1 By Buyer. Buyer shall not assign this Contract or transfer possession without Seller's prior written consent, which shall not be unreasonably withheld. ☐ Consent not required.

11.2 By Seller. Seller may assign Seller's rights to payment, subject to Buyer's rights under this Contract.

12. DUE-ON-SALE / GARN–ST. GERMAIN WARNING

WARNING: If Seller has an existing mortgage or security deed on the Property, that loan likely contains a due-on-sale clause. Entering into this Contract may allow Seller's lender to accelerate that loan and demand full payment. The federal Garn–St. Germain Act (12 U.S.C. § 1701j-3) exempts certain transfers (e.g., into a borrower's inter vivos trust, some family transfers) but a contract for deed generally is not an exempt transfer. Both Parties should review Seller's existing loan documents and obtain lender consent where required.

13. DISCLOSURES

13.1 Lead-Based Paint (Pre-1978 Housing). ☐ If the dwelling was built before 1978, Seller must provide the EPA/HUD lead-based paint disclosure and pamphlet and this Contract must include the lead warning statement (42 U.S.C. § 4852d; 24 C.F.R. Part 35). ☐ Not applicable (built 1978 or later).

13.2 Property Condition. Seller shall provide any property condition disclosures required under Georgia law and shall disclose known material defects.

13.3 Other Disclosures. [Flood zone / lead / radon / other: ________________________________].

14. GENERAL PROVISIONS

14.1 Time of Essence. Time is of the essence as to all payment obligations.

14.2 Entire Agreement. This Contract, with its Exhibits, is the entire agreement and supersedes prior negotiations.

14.3 Governing Law. This Contract is governed by the laws of the State of Georgia.

14.4 Severability. If any provision is held invalid, the remainder stays in effect.

14.5 Notices. Notices shall be in writing and delivered to the addresses in Section 1.

14.6 Counterparts. This Contract may be executed in counterparts, including electronic signatures.

15. SIGNATURES AND ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties have executed this Contract as of the date first written above.

SELLER:

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

Printed Name: [________________________________]

BUYER:

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

Printed Name: [________________________________]

Unofficial / Official Witness:

Signature: [________________________________]

NOTARY ACKNOWLEDGMENT

STATE OF GEORGIA, COUNTY OF [________________]

On this [____] day of [____________], 20[____], before me personally appeared the above-named person(s), known to me or proven to be the person(s) who executed the foregoing Contract, and acknowledged it to be their free act and deed.

Signature of Notary Public: [________________________________]

My commission expires: [__/__/____] [NOTARY SEAL]

EXHIBIT A — Legal Description

[____________________________________________________________]

EXHIBIT B — Permitted Encumbrances

[____________________________________________________________]

SOURCES AND REFERENCES

• O.C.G.A. § 44-2-6 — Recording bond for title, contracts, transfers; priority: https://law.justia.com/codes/georgia/title-44/chapter-2/article-1/part-1/section-44-2-6/
• O.C.G.A. § 48-6-61 — Intangible recording tax (long-term notes): https://law.justia.com/codes/georgia/title-48/chapter-6/article-3/section-48-6-61/
• Georgia DOR — Intangible Recording Tax: https://dor.georgia.gov/intangible-recording-tax
• O.C.G.A. § 44-14-160 et seq. — Security deeds and foreclosure
• HUD/EPA Lead-Based Paint Disclosure Rule, 24 C.F.R. Part 35: https://www.epa.gov/lead
• Garn–St. Germain Act, 12 U.S.C. § 1701j-3: https://www.law.cornell.edu/uscode/text/12/1701j-3