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 holds equitable title and is entitled to possession.

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 (Recommended). ☐ Seller shall deposit an executed deed with [escrow/title company] under written instructions to deliver it to Buyer upon payment in full. Idaho contracts for deed are commonly held in a third-party long-term escrow.

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

5. RECORDING

5.1 Recording in Idaho. This Contract may be recorded with the County Recorder of the county where the Property is located. Under Idaho Code § 55-805, an instrument must be acknowledged (notarized) before it may be recorded; under Idaho Code § 55-812, an unrecorded conveyance is void as against a subsequent good-faith purchaser whose conveyance is first recorded. Recording gives constructive notice (Idaho Code § 55-808).

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

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 — Idaho Rule (Forfeiture With Equitable Limits). Upon an uncured default, Seller may pursue the remedies available under Idaho law:

(a) Forfeiture / Termination. Idaho enforces a properly drafted forfeiture clause (with a time-is-of-the-essence provision), allowing Seller to terminate the Contract, retain payments as agreed, and recover possession. However, Idaho courts apply equity to relieve against forfeitures that operate as a penalty — particularly where Buyer has accumulated substantial equity, the breach is minor, or the forfeiture is grossly disproportionate to Seller's actual loss. A court may require the forfeited amount to be reasonable as liquidated damages.

(b) Judicial Foreclosure / Action for the Price. Where forfeiture would be inequitable because Buyer holds substantial equity, a court may instead require foreclosure of the Buyer's interest with a sale, or Seller may 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 within the grace period, or redeem by paying the full balance and Seller's reasonable costs before the Contract is terminated or a foreclosure sale is completed.

8.6 Cumulative Remedies; Attorney's Fees. Remedies are cumulative. The prevailing party may recover reasonable attorney's fees and costs to the extent permitted by law (Idaho Code § 12-120/121).

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 likely contains a due-on-sale clause. Entering into this Contract may allow Seller's lender to accelerate the loan. The federal Garn–St. Germain Act (12 U.S.C. § 1701j-3) exempts certain transfers, but a contract for deed generally is not an exempt transfer. Both Parties should review Seller's loan documents and obtain lender consent where required.

13. DISCLOSURES

13.1 Lead-Based Paint (Pre-1978 Housing). ☐ If the Property is covered target housing, Seller must provide the EPA/HUD lead-based paint disclosure and pamphlet, and the lead warning statement must be included (42 U.S.C. § 4852d; 24 C.F.R. Part 35). ☐ Not applicable (not covered or exempt).

13.2 Property Condition. Seller shall provide the Idaho Property Condition Disclosure required under Idaho Code Title 55, Chapter 25, where applicable, and shall disclose known material defects.

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 all payment obligations.

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, 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: [________________________________]

NOTARY ACKNOWLEDGMENT

STATE OF IDAHO, COUNTY OF [________________]

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

Signature of Notary Public: [________________________________]

Residing at: [________________________________]

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

EXHIBIT A — Legal Description

[____________________________________________________________]

EXHIBIT B — Permitted Encumbrances

[____________________________________________________________]

SOURCES AND REFERENCES

• Idaho Code § 55-805 — Acknowledgment necessary to authorize recording: https://law.justia.com/codes/idaho/title-55/chapter-8/section-55-805/
• 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. 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