Contract for Deed (Land Contract) - Maine

LAND INSTALLMENT CONTRACT (CONTRACT FOR DEED)

(State of Maine)

1. PARTIES

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

Vendor (Seller): [VENDOR LEGAL NAME], whose post-office address is [VENDOR ADDRESS] ("Vendor"); and

Purchaser (Buyer): [PURCHASER LEGAL NAME], whose post-office address is [PURCHASER ADDRESS] ("Purchaser").

Vendor and Purchaser are each a "Party" and together the "Parties." Each Party's full name and post-office address is set out above (33 M.R.S. § 482(1)(A)).

2. LEGAL DESCRIPTION AND PROPERTY

Vendor agrees to sell, and Purchaser agrees to buy, on the terms in this Contract, the following improved real property located in [COUNTY] County, Maine, sold to be occupied as a dwelling (the "Property") (33 M.R.S. §§ 481(3), 482(1)(C)):

Street address: [________________________________]

Legal description:

[INSERT COMPLETE LEGAL DESCRIPTION — attach as Exhibit A if lengthy]

together with all improvements, fixtures, easements, and appurtenances.

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

The date this Contract is signed by each Party is stated at the signature block (33 M.R.S. § 482(1)(B)). Interest accrues on the unpaid principal balance from [__/__/____]. Each payment shall be applied first to accrued interest, then to principal.

Prepayment (§ 482(1)(P)). Purchaser has the right to accelerate or prepay any installment payments without penalty, unless the Parties have agreed to the contrary as follows: [________________________________].

4. ENCUMBRANCES; TITLE EVIDENCE; DEED AT PAYOFF

4.1 Statement of encumbrances (§ 482(1)(J)). The following encumbrances, pending public-agency orders, and matters of public record affect the Property: [☐ NONE ☐ as follows: ________________________________].

4.2 Not a mortgage; title at payoff (§ 482(1)(K)). THIS CONTRACT IS NOT A MORTGAGE. THE PURCHASER DOES NOT OBTAIN TITLE TO THE PROPERTY UNTIL THE PURCHASE PRICE IS PAID IN FULL. Vendor retains title as security until full payment, at which time Vendor shall convey title to Purchaser.

4.3 Evidence of title; deed to be delivered (§ 482(1)(M)). Vendor shall provide evidence of title by copy of deed or otherwise at the time of execution of this Contract. Upon completion of the Contract, Vendor shall deliver a [☐ full Warranty Deed ☐ the following deed: ________________________________] conveying marketable title, free of liens except permitted exceptions.

4.4 Vendor's mortgage; purchaser's right to cure (§ 482(1)(N)). If Vendor defaults on any mortgage on the Property, Purchaser may pay on that mortgage and receive credit against the amounts owed under this Contract.

4.5 Title insurance. Vendor shall furnish, at [☐ Vendor's ☐ Purchaser's] expense, a commitment for an owner's title insurance policy showing marketable title in Vendor, subject only to the permitted exceptions.

5. RECORDATION (33 M.R.S. § 482(2))

Within twenty (20) days after this Contract has been signed by both Vendor and Purchaser, Vendor shall cause a copy of this Contract, or a Memorandum of this Contract, to be recorded at Purchaser's expense in the Registry of Deeds for [COUNTY] County, Maine. If a memorandum is recorded, it shall be entitled "Memorandum of a Land Installment Contract" and shall contain, at a minimum, the names of the Parties, the signatures of the Parties, a description of the Property, and the applicable time periods. Vendor shall give Purchaser a copy of the recorded contract or memorandum and its recording reference within [____] days after recording.

6. POSSESSION

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

7. TAXES, INSURANCE, AND MAINTENANCE

7.1 Taxes and assessments (§ 482(1)(O)). From the date of this Contract, Purchaser shall be responsible for payment of taxes, assessments, and other charges against the Property, unless agreed to the contrary as follows: [________________].

7.2 Insurance. Purchaser shall keep the improvements insured against fire and extended-coverage hazards for not less than $[____________], naming Vendor as additional insured / loss payee as Vendor's interest may appear.

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

8. DEFAULT AND REMEDIES

8.1 Events of Default

Purchaser is in default if Purchaser (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 material term.

8.2 Right to Cure (33 M.R.S. § 482(1)(L); 14 M.R.S. §§ 6111, 6203-F)

Purchaser has the rights established by 14 M.R.S. § 6111 to cure a default. Before foreclosing Purchaser's rights, Vendor shall give the written notice required by 14 M.R.S. § 6203-F(2), sent by certified mail, return receipt requested, to Purchaser's last known address and, if undeliverable, by ordinary mail. The notice shall identify the default, state all amounts past due including contractually specified reasonable interest and late charges, and state how Purchaser may cure. Vendor also shall comply with § 6111's notice and delivery requirements to the extent applicable. Purchaser may cure for at least 35 days after notice is given under § 6203-F(2), or any longer period required by applicable law; this Contract grants the 35-day minimum even where § 6203-F requires only 30 days. A timely cure restores Purchaser's rights as though the default had not occurred.

8.3 Foreclosure and Redemption

After the cure period and any additional period required by law expires without cure, Vendor may foreclose Purchaser's rights under 14 M.R.S. § 6203-F by a lawful mortgage-foreclosure method. Purchaser has the 60-day redemption period stated in § 6203-F(1) and may apply within that period for a court extension for good cause, subject to the statute's notice and recording rules. If the Property is an owner-occupied primary residence of no more than four units, either Party may request mediation under § 6203-F(1-A). Any separate note or other obligation intended to survive foreclosure must satisfy all conditions of 33 M.R.S. § 483(2); this Contract creates no such separate obligation.

8.4 No Self-Help

Vendor shall not use self-help eviction or summary repossession to enforce a default under this Contract.

8.5 Grace; Late Charge

A [____]-day courtesy grace period applies to monthly installments before a late charge of [____]% / $[____] is assessed. This grace period does not shorten the cure period in Section 8.2.

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

If any mortgage encumbers the Property, it may contain a "due-on-sale" clause permitting the lienholder to accelerate the debt upon transfer. The federal Garn-St. Germain Act (12 U.S.C. § 1701j-3) exempts certain transfers but a land-installment sale may trigger acceleration. Vendor represents that [☐ the Property is unencumbered ☐ the lienholder has consented ☐ Vendor will keep the underlying loan current]. Under § 482(1)(N), if Vendor defaults on a mortgage, Purchaser may cure and receive credit. The Parties acknowledge this risk.

10. ASSIGNMENT

Purchaser shall not assign this Contract or convey Purchaser's interest without Vendor's prior written consent, not to be unreasonably withheld. Vendor may assign Vendor's interest subject to Purchaser's rights.

11. RISK OF LOSS

Risk of loss passes to Purchaser upon possession. If the Property is materially damaged or condemned, 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 disclosure. Unless a specific exemption in 33 M.R.S. § 172 applies, Vendor shall deliver the property disclosure statement required by §§ 173–174 no later than the time Purchaser makes an offer. The statement must address the current § 173 disclosures, including private-water test problems and any test detecting PFAS, as amended by Public Law 2025, chapter 746, § 4. Purchaser acknowledges receiving the statement on [__/__/____]: ________________________________ [Purchaser initials]. Delivery after an offer preserves Purchaser's statutory cancellation rights under § 174.

12.2 Lead-based paint. If the Property is covered target housing, before Purchaser is obligated Vendor shall provide the EPA pamphlet Protect Your Family From Lead in Your Home, disclose known lead-based paint and hazards, provide all available evaluation reports, and give Purchaser a 10-day opportunity for risk assessment or inspection unless the Parties mutually agree in writing to a different period. The Parties shall complete and sign the EPA seller disclosure form, including its Lead Warning Statement, purchaser acknowledgments and any agent acknowledgment, on a separate sheet attached to this Contract (42 U.S.C. § 4852d). The official form is at https://www.epa.gov/sites/default/files/documents/selr_eng.pdf.

☐ Covered target housing; completed and signed EPA seller disclosure form attached before signing this Contract.
☐ Not covered or exempt; basis: [________________________________].

12.3 Other disclosures: [________________________________].

13. GENERAL PROVISIONS

13.1 Governing law. This Contract is governed by the laws of the State of Maine, including 33 M.R.S. ch. 8.

13.2 Execution in duplicate (§ 482(1)). This Contract is executed in duplicate, and a copy is provided to each of Vendor and Purchaser.

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

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

13.5 Notices. Notices must be in writing and delivered to the post-office addresses above. Right-to-cure notices must additionally comply with 14 M.R.S. § 6111.

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

14. SIGNATURES AND ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties have executed this Contract in duplicate.

VENDOR:

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

Printed name: [VENDOR LEGAL NAME]

RECEIPT AND PURCHASER'S SIGNATURE (33 M.R.S. § 482(1)(Q)):

The undersigned Purchaser acknowledges receipt of a copy of this Land Installment Contract signed by the Vendor.

PURCHASER:

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

Printed name: [PURCHASER LEGAL NAME]

ACKNOWLEDGMENT

This record was acknowledged before me on [__/__/____] by [NAME(S) OF PERSONS ACKNOWLEDGING].

_________________________________
Notarial officer's signature
Printed name: [____________]
Title of office: [____________]
My commission expires: [__/__/____]

FEDERAL LEAD WARNING AND DISCLOSURE ATTACHMENT

Property: [________________________________________________]

LEAD WARNING STATEMENT

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 disclosure: ☐ Seller knows of lead-based paint or lead-based-paint hazards: [DESCRIBE BASIS, LOCATION, AND CONDITION: ________________________________] ☐ Seller has no knowledge of lead-based paint or lead-based-paint hazards.

Records and reports provided to Buyer: [LIST EACH AVAILABLE LEAD-HAZARD RECORD OR REPORT PROVIDED: ________________________________] ☐ Seller has no such records or reports available.

Buyer acknowledgment: By signing below, Buyer acknowledges receipt of Seller's disclosure and the records or reports listed above, and receipt of the federally approved lead-hazard information pamphlet. Buyer also states that Buyer has read the Lead Warning Statement and understands its contents.

Inspection opportunity: Buyer ☐ received a 10-day opportunity to conduct a lead risk assessment or inspection before becoming obligated under this Contract; ☐ received a different period mutually agreed in writing: [____] days; or ☐ waives that opportunity.

Seller's agent certification, if an agent is involved: I informed Seller of Seller's obligations under 42 U.S.C. § 4852d and am aware of my duty to ensure compliance with the federal lead-disclosure requirements.

Agent name (repeat for each involved agent): [________________________________] Agent signature: [________________________________] Date: [__/__/____]

By signing, Seller, any involved agent, and Buyer certify the accuracy of their statements to the best of their knowledge.

Seller signature (repeat for each seller): [________________________________] Date: [__/__/____]

Buyer signature (repeat for each purchaser): [________________________________] Date: [__/__/____]

Seller and any involved agent must retain a copy of the completed attachment for at least three years from completion of the sale under 40 C.F.R. § 745.113(c)(1).

SOURCES AND REFERENCES

• 33 M.R.S. § 481 (Definitions): https://www.mainelegislature.org/legis/statutes/33/title33sec481.html
• 33 M.R.S. § 482 (Minimum contents; recordation): https://www.mainelegislature.org/legis/statutes/33/title33sec482.html
• 33 M.R.S. § 483 (Prohibited acts): https://legislature.maine.gov/statutes/33/title33sec483.html
• 14 M.R.S. § 6111 (Right to cure default): https://www.mainelegislature.org/legis/statutes/14/title14sec6111.html
• 14 M.R.S. § 6203-F (Contract foreclosure): https://legislature.maine.gov/statutes/14/title14sec6203-F.html
• Public Law 2025, ch. 746, § 4 (current § 173 private-water disclosure): https://legislature.maine.gov/doc/12627
• Federal lead disclosure: https://www.epa.gov/lead/real-estate-disclosure