Contract for Deed (Land Contract)

CONTRACT FOR DEED (INSTALLMENT REAL ESTATE CONTRACT)

(State of Iowa)

1. PARTIES

This Contract for Deed (this "Contract") is made as of [__/__/____] by and between:

Seller / Vendor: [SELLER LEGAL NAME], of [SELLER ADDRESS] ("Seller"); and

Buyer / Vendee: [BUYER LEGAL NAME], of [BUYER ADDRESS] ("Buyer").

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

2. LEGAL DESCRIPTION AND PROPERTY

Seller agrees to sell, and Buyer agrees to buy, on the terms in this Contract, the following real estate located in [COUNTY] County, Iowa (the "Property"):

Street address: [________________________________]

Legal description:

[INSERT COMPLETE METES-AND-BOUNDS OR LOT-BLOCK-PLAT LEGAL DESCRIPTION — attach as Exhibit A if lengthy]

Parcel / Tax ID No.: [____________]

together with all improvements, fixtures, easements, and appurtenances, and the following personal property included in the sale (if any): [________________________________].

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

Interest accrues on the unpaid principal balance from [__/__/____]. Each payment shall be applied first to accrued interest, then to principal, unless otherwise required by law. Time is of the essence.

☐ Prepayment permitted in whole or in part at any time without penalty.
☐ Prepayment subject to the following terms: [________________________________].

4. TITLE; DEED HELD PENDING PAYOFF; ESCROW

4.1 Retention of legal title. Seller retains legal title to the Property as security until Buyer has paid the full purchase price and performed all obligations under this Contract. Buyer holds equitable title and is entitled to possession as provided below.

4.2 Deed delivered at payoff. Upon full payment of the purchase price and performance of all terms, Seller shall convey marketable title to Buyer by [☐ Warranty Deed ☐ Special Warranty Deed], free of liens and encumbrances except those of record at signing and those created or permitted by Buyer.

4.3 Escrow of executed deed (optional). ☐ Seller shall, at signing, execute and deposit a [Warranty Deed] into escrow with [ESCROW AGENT NAME] under escrow instructions providing for delivery to Buyer upon full payment and return to Seller upon a completed forfeiture or cancellation.

4.4 Title evidence. Seller shall furnish, at [☐ Seller's ☐ Buyer's] expense, an abstract of title continued to date or a commitment for an owner's title insurance policy showing marketable title in Seller, subject only to the permitted exceptions.

5. RECORDING

Buyer [☐ may ☐ shall] record this Contract (or a memorandum of it) in the office of the County Recorder of [COUNTY] County, Iowa, pursuant to Iowa Code ch. 558. Recording protects Buyer's interest against subsequent purchasers and creditors. Recording fees are paid by [________________].

6. POSSESSION

Buyer is entitled to possession of the Property on [__/__/____]. Buyer shall keep the Property in good repair and shall not commit waste.

7. TAXES, INSURANCE, AND MAINTENANCE

7.1 Taxes and assessments. Beginning [__/__/____], Buyer shall pay before delinquency all real estate taxes and special assessments on the Property. [☐ Buyer shall pay 1/12 of estimated annual taxes monthly to Seller/escrow.]

7.2 Insurance. Buyer shall keep the improvements insured against fire and extended-coverage hazards for not less than $[____________], naming Seller as an additional insured / loss payee as Seller's interest may appear, and shall deliver evidence of coverage to Seller.

7.3 Maintenance and utilities. Buyer shall maintain the Property, comply with all laws and ordinances, and pay all utilities and charges.

8. DEFAULT AND REMEDIES

8.1 Events of Default

Buyer is in default if Buyer (a) fails to pay any installment or other sum when due; (b) fails to pay taxes or maintain insurance; (c) commits waste; or (d) breaches any other term and fails to cure within the time stated in any notice.

8.2 Seller's Iowa Remedies — Election

(A) Statutory Forfeiture under Iowa Code ch. 656. Because this Contract reserves the right of forfeiture, Seller may forfeit and cancel Buyer's rights ONLY by complying with Iowa Code ch. 656. Under Iowa Code § 656.1, the Contract "shall, nevertheless, not be forfeited or canceled except as provided in" ch. 656. To initiate forfeiture, Seller must serve on Buyer a written notice that:

• (a) reasonably identifies the Contract by a document reference number and accurately describes the real estate (§ 656.2(1)(a));
• (b) specifies the terms of the Contract with which Buyer has not complied (§ 656.2(1)(b));
• (c) states that unless, within thirty (30) days after completed service of the notice, Buyer performs the terms in default and pays the reasonable costs of serving the notice, the Contract will be forfeited (§ 656.2(1)(c)); and
• (d) specifies the amount of any attorney fees claimed under § 656.7 and states that payment of those attorney fees is not required to comply with the notice and prevent forfeiture (§ 656.2(1)(d)).

Seller must also serve a copy of the notice on the person in possession (if different), on Buyer's mortgagees of record, and on persons of record who have filed a request for notice under § 656.2(2). Service shall be made and proof recorded as required by Iowa Code §§ 656.3 and 656.5. If Buyer cures the default and pays service costs within the 30-day period, the forfeiture does not occur and the Contract continues in force.

(B) Foreclosure as a mortgage under Iowa Code ch. 654. In the alternative, Seller may elect to foreclose this Contract in equity as though it were a mortgage, in which event Buyer's statutory right of redemption under Iowa Code ch. 628 applies. A nonjudicial voluntary foreclosure procedure under Iowa Code § 654.18 may also be available by agreement.

8.3 No Self-Help

Seller shall not use self-help eviction or otherwise oust Buyer except through the statutory forfeiture or foreclosure process. Upon a completed, valid forfeiture, Buyer's rights and any payments made are forfeited as liquidated damages, and Seller may pursue possession.

8.4 Buyer's Cure / Grace

Buyer has the cure rights provided by Iowa Code ch. 656 (30 days after completed service) and, in any foreclosure, the redemption rights of ch. 628. A [____]-day courtesy grace period applies to monthly installments before a late charge of [____]% / $[____] is assessed.

9. DUE-ON-SALE / GARN-ST. GERMAIN NOTICE

If any mortgage or deed of trust encumbers the Property, it may contain a "due-on-sale" clause allowing the lienholder to accelerate the debt upon transfer of an interest. The federal Garn-St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3) exempts certain transfers (e.g., some transfers of owner-occupied residential property of fewer than five units) but a sale by contract for deed may trigger acceleration. Seller represents that [☐ the Property is unencumbered ☐ the underlying lienholder has consented ☐ Seller will keep the underlying loan current]. The Parties acknowledge this risk.

10. ASSIGNMENT

Buyer shall not assign this Contract or convey Buyer's equitable interest without Seller's prior written consent, which shall not be unreasonably withheld. Seller may assign Seller's interest, subject to Buyer's rights under this Contract.

11. RISK OF LOSS

Risk of loss or damage to the Property passes to Buyer upon possession. If the Property is materially damaged or taken by condemnation, insurance or condemnation proceeds shall be applied as the Parties agree or as required by law, with any balance credited to the purchase price.

12. DISCLOSURES

12.1 Residential property condition disclosure. For the sale of residential real property, Seller shall deliver the disclosure statement required by Iowa Code ch. 558A before the Buyer makes a written offer or as otherwise required.

12.2 Lead-based paint (pre-1978 housing). If the dwelling was built before 1978, federal law (42 U.S.C. § 4852d; 24 C.F.R. pt. 35; 40 C.F.R. pt. 745) requires Seller to (a) disclose known lead-based paint and hazards, (b) provide the EPA pamphlet "Protect Your Family From Lead in Your Home," (c) provide available records, and (d) give Buyer a 10-day opportunity to conduct a lead inspection. The Lead Warning Statement and signed disclosure must be attached.

☐ Property was built before 1978 (lead disclosure attached).
☐ Property was built in 1978 or later (lead disclosure not required).

12.3 Other disclosures: [________________________________].

13. GENERAL PROVISIONS

13.1 Governing law. This Contract is governed by the laws of the State of Iowa.

13.2 Entire agreement; amendment. This Contract is the entire agreement and may be amended only in a writing signed by both Parties.

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

13.4 Notices. Notices must be in writing and delivered to the addresses above (or as updated in writing). Forfeiture notices must additionally comply with Iowa Code §§ 656.2–656.3.

13.5 Successors. This Contract binds and benefits the Parties' heirs, successors, and permitted assigns.

13.6 Attorney fees. Seller's recoverable attorney fees in a forfeiture are limited by Iowa Code § 656.7.

14. SIGNATURES AND ACKNOWLEDGMENT

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

SELLER:

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

Printed name: [SELLER LEGAL NAME]

BUYER:

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

Printed name: [BUYER LEGAL NAME]

ACKNOWLEDGMENT

On this [____] day of [____________], 20[____], before me, the undersigned, a Notary Public in and for said State, personally appeared [NAME(S)], to me known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed.

_________________________________
Notary Public in and for the State of Iowa
My commission expires: [__/__/____]

15. CONSUMER-PROTECTION GUIDANCE

SOURCES AND REFERENCES

• Iowa Code ch. 656 (Forfeiture of Real Estate Contracts): https://www.legis.iowa.gov/docs/code/656.pdf
• Iowa Code § 656.2 (Notice): https://www.legis.iowa.gov/docs/code/656.2.pdf
• Iowa Code ch. 654 (Foreclosure): https://www.legis.iowa.gov/docs/code/654.pdf
• Iowa Code ch. 628 (Redemption): https://www.legis.iowa.gov/docs/code/628.pdf
• Iowa Code ch. 558 (Recording): https://www.legis.iowa.gov/docs/code/558.pdf
• Iowa Code ch. 558A (Residential Disclosure): https://www.legis.iowa.gov/docs/code/558A.pdf
• Iowa Legal Aid, "Mortgage Foreclosures and Land Contract Forfeitures": https://iowalegalaid.org/resource/mortgage-foreclosures-and-land-contract-forfeitures/
• Fairfax v. Oaks Development Co., 713 N.W.2d 704 (Iowa 2006)
• Federal lead disclosure: https://www.epa.gov/lead/real-estate-disclosure