Contract for Deed (Land Contract) - Idaho

CONTRACT FOR DEED (INSTALLMENT LAND CONTRACT)

State of Idaho — Installment Sale with Retained Legal Title

1. PARTIES

This Contract for Deed (also known as an "Installment Land Contract" or "Land Sale Contract," and referred to herein as this "Contract") is made 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 below, the real property located in the County of [________________], State of Idaho, commonly known as:

Street Address: [________________________________]

Parcel / Tax No.: [________________________________]

Legal Description: (insert full legal description or attach as Exhibit A)

[____________________________________________________________]

together with all improvements, fixtures, water rights, easements, 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 of $[________________] on the maturity date. Buyer acknowledges Buyer may need to refinance to pay it.

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

3.4 Interest Rate Compliance. The Parties select the written annual interest rate above. Idaho Code § 28-22-104(1) supplies a twelve-percent rate for its listed money categories when no express written contract fixes a different rate; it does not itself state a maximum contract rate. Idaho counsel must review the selected rate under all law applicable to this transaction.

4. TITLE; DEED HELD PENDING PAYOFF; ESCROW

4.1 Retention of Legal Title. Seller retains legal title until Buyer has paid the Purchase Price in full and performed all obligations. Buyer has the contractual right to possession on the date stated in Section 6.

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

4.3 Escrow of Deed. ☐ Seller shall deposit an executed deed with [escrow/title company] under written instructions to deliver it to Buyer upon payment in full.

4.4 Title Insurance. ☐ Buyer may obtain an owner's title insurance policy at Buyer's expense.

5. RECORDING

5.1 Recording in Idaho. Submit any recordable Contract or memorandum to the County Recorder of the county where the Property is located (Idaho Code § 55-808). Idaho Code § 55-805 requires an acknowledgment or proof and certification before recording unless otherwise provided. Section 55-812 governs priority against a subsequent good-faith purchaser or mortgagee for value whose conveyance is first recorded.

5.2 Buyer Protection. ☐ Buyer may submit this Contract or a memorandum for recording if it is eligible for recording. The Parties should confirm the instrument's recordability and priority effect with the County Recorder and Idaho counsel; Section 55-812 addresses priority against certain later good-faith purchasers and mortgagees.

6. POSSESSION

Buyer is 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 directly when due. ☐ Buyer shall pay taxes to Seller/escrow in installments.

7.2 Insurance. Buyer shall keep the Property insured against fire and casualty for not less than $[________________], naming Seller as additional insured / loss payee.

7.3 Maintenance. Buyer shall keep the Property in good repair, shall not commit waste, and shall comply with all applicable laws 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 beyond the grace period; (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 to cure by paying all past-due amounts plus late charges. The Contract ☐ does / ☐ does not include a time-is-of-the-essence clause.

8.3 Seller's Remedies. After an uncured material default and the notice required by this Contract and applicable law, Seller may seek [TERMINATION AND POSSESSION / PAYMENT OF AMOUNTS DUE / FORECLOSURE OR OTHER COURT RELIEF] to the extent the selected remedy is available under Idaho law. Seller shall account for amounts Buyer has paid. Any proposed forfeiture, acceleration, recovery of possession, or recovery of a remaining balance is subject to applicable law and court review; this Contract alone does not establish the procedure or amount recoverable.

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 Cure and Later Relief. Buyer may cure within the notice period stated in Section 8.2. Any later reinstatement, redemption, or other relief depends on applicable law and the procedure used to enforce this Contract.

8.6 Attorney's Fees. The Parties agree that the prevailing party in an action to enforce this Contract may recover reasonable attorney's fees and costs to the extent enforceable under applicable law.

9. PREPAYMENT

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

10. RISK OF LOSS

Risk of loss shall be on [Buyer / Seller] during the term. Insurance proceeds shall be applied to restoration or to the unpaid balance as the Parties agree in writing.

11. ASSIGNMENT

11.1 By Buyer. Buyer shall not assign this Contract or transfer possession without Seller's prior written consent, not 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 deed of trust on the Property, it may contain a due-on-sale clause. Entering into this Contract may permit Seller's lender to accelerate under the loan documents. The federal Garn–St. Germain Act (12 U.S.C. § 1701j-3) lists limited protected transfers in subsection (d); it does not list a general contract-for-deed exception. Both Parties should review Seller's loan documents and obtain lender consent where required.

13. DISCLOSURES

13.1 Lead-Based Paint (Target Housing). ☐ The Property is covered target housing: before Buyer becomes obligated, Seller has delivered the federally required lead hazard pamphlet, disclosed known lead-based paint and hazards, provided all available evaluation reports, and allowed the inspection opportunity stated in Exhibit C. The Parties shall complete and sign Exhibit C, including the Lead Warning Statement on a separate attached sheet, before signing this Contract. ☐ The Property is not covered target housing or an exemption applies: [IDENTIFY BASIS]. A checkbox here does not replace Exhibit C when coverage applies (42 U.S.C. § 4852d; 24 C.F.R. § 35.92).

13.2 Idaho Property Condition Disclosure. For a covered transfer of residential property with one to four dwelling units, including an installment sale contract, Seller shall complete the form prescribed by Idaho Code § 55-2508 (or a permitted alternative form), sign and date it, and deliver it to Buyer or Buyer's agent within ten days after accepting Buyer's offer. Buyer shall sign, date, and return a receipt copy as required by § 55-2509. Attach the completed form as Exhibit D; check any § 55-2505 exemption with Idaho counsel. If Buyer receives the form or an amendment after entering this Contract, § 55-2515 permits a signed, dated rescission based on a specifically identified disclosure objection, delivered within three business days after receipt, with return of Buyer's deposit. The Parties shall not treat this Contract as waiving that statutory right.

13.3 Other Disclosures. [Flood zone / water rights / homeowners association / other: ________________________________].

14. GENERAL PROVISIONS

14.1 Time of Essence. ☐ Time is of the essence as to payment obligations. ☐ The Parties have not agreed to a time-is-of-the-essence term.

14.2 Entire Agreement. This Contract, with its Exhibits, is the entire agreement.

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

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. The Parties may use electronic signatures where applicable law permits them.

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: [________________________________]

NOTARY ACKNOWLEDGMENT

Complete a separate acknowledgment for each signatory whose execution must be acknowledged. Select the capacity that applies.

State of [____________________], County of [____________________]

This record was acknowledged before me on [__/__/____] by [NAME OF SIGNATORY].

☐ If signing for an entity or another person: [NAME OF SIGNATORY] acted as [TITLE OR AUTHORITY] of [NAME OF PARTY ON WHOSE BEHALF THIS CONTRACT WAS EXECUTED].

Signature of Notary Public: [________________________________]

Official stamp: [AFFIX STAMP]

My commission expires: [__/__/____]

EXHIBIT A — Legal Description

[____________________________________________________________]

EXHIBIT B — Permitted Encumbrances

[____________________________________________________________]

EXHIBIT C — Lead-Based Paint Disclosure for Covered Target Housing

LEAD WARNING STATEMENT — PRINT THIS PARAGRAPH IN LARGE TYPE ON A SEPARATE ATTACHED SHEET

Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller's disclosure: ☐ Known lead-based paint and/or hazards are present at [LOCATIONS], with these details about their basis and condition: [DETAILS]. ☐ Seller has no knowledge of lead-based paint or hazards at the Property.

Available records or reports delivered to Buyer: [LIST REPORTS AND DATES / NONE AVAILABLE].

Buyer's acknowledgment: Buyer confirms receipt of the Seller's disclosure, the listed available records or reports, and the federally approved lead hazard information pamphlet. Buyer has read and understands the Lead Warning Statement. Before becoming obligated, Buyer ☐ received the opportunity to conduct a risk assessment or inspection for 10 days; ☐ mutually agreed with Seller to a different period of [NUMBER] days; or ☐ waives that opportunity.

Agent's acknowledgment (if an agent represents Seller): Agent has informed Seller of Seller's obligations under 42 U.S.C. § 4852d and is aware of Agent's duty to ensure compliance with the federal disclosure rule. ☐ No such agent is involved.

Seller signature: [SIGNATURE] Date: [__/__/____]

Buyer signature: [SIGNATURE] Date: [__/__/____]

Seller's agent signature (if applicable): [SIGNATURE] Date: [__/__/____]

EXHIBIT D — Idaho Property Condition Disclosure (if applicable)

Attach the completed, signed, and dated form prescribed by Idaho Code § 55-2508, or a permitted alternative form. Buyer shall sign and date a receipt copy and return it to Seller or Seller's agent under § 55-2509. If an exemption applies, identify it here: [________________________________].

SOURCES AND REFERENCES

• Idaho Code § 55-805 — Acknowledgment necessary to authorize recording: https://legislature.idaho.gov/statutesrules/idstat/Title55/T55CH8/SECT55-805/
• Idaho Code § 55-812 — Unrecorded conveyance void as against subsequent purchaser
• Idaho Code § 55-808 — Recording; constructive notice
• Idaho Code Title 28, Chapter 22 — Interest
• HUD/EPA Lead-Based Paint Disclosure Rule, 24 C.F.R. § 35.92: https://www.ecfr.gov/current/title-24/part-35/section-35.92
• Garn–St. Germain Act, 12 U.S.C. § 1701j-3: https://uscode.house.gov/us/usc/119-120/t12/s1701j-3/