Contract for Deed (Land Contract)

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. Recording protects Purchaser's interest against subsequent purchasers and creditors (33 M.R.S. ch. 7).

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. § 6111) — Statutory Statement (§ 482(1)(L))

Purchaser has the rights established by 14 M.R.S. § 6111 to cure a default. Before Vendor may accelerate the unpaid balance or enforce the security interest on the basis of Purchaser's default, Vendor must give Purchaser the written right-to-cure notice required by 14 M.R.S. § 6111 and afford Purchaser the statutory period (generally 35 days after the notice is given for owner-occupied residential property) to cure the default by paying the amounts then due. A timely cure reinstates this Contract as though no default had occurred.

8.3 Foreclosure

Because Maine treats the Purchaser's interest as analogous to a mortgagor's, upon an uncured default Vendor's remedy is to foreclose the Contract in accordance with Maine's judicial foreclosure procedures (14 M.R.S. § 6321 et seq.), and not by summary eviction. Purchaser retains the protections afforded a mortgagor, including any applicable redemption rights.

8.4 No Self-Help

Vendor shall not use self-help eviction or summary repossession; Vendor must proceed through the statutory cure and foreclosure process.

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 statutory § 6111 cure period.

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. Vendor shall deliver the residential property disclosure statement required by 33 M.R.S. § 171 et seq. for the transfer of residential real property by installment land contract.

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 Vendor to disclose known lead-based paint and hazards, provide the EPA pamphlet "Protect Your Family From Lead in Your Home," provide available records, and give Purchaser a 10-day inspection opportunity. The signed Lead Warning Statement 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 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

On [__/__/____], personally appeared the above-named [NAME(S)] and acknowledged the foregoing instrument to be their free act and deed.

_________________________________
Notary Public / Attorney-at-Law
Printed name: [____________]
My commission expires: [__/__/____]

15. CONSUMER-PROTECTION GUIDANCE

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. ch. 8 (Land Installment Contracts): https://legislature.maine.gov/statutes/33/title33ch8.pdf
• 14 M.R.S. § 6111 (Right to cure default): https://www.mainelegislature.org/legis/statutes/14/title14sec6111.html
• 14 M.R.S. § 6321 et seq. (Foreclosure): https://www.mainelegislature.org/legis/statutes/14/title14sec6321.html
• Pine Tree Legal Assistance, "Land Installment Contracts, Options to Buy, and Rent-to-Own": https://www.ptla.org/land-installment-contracts-options-buy-and-rent-own-agreements-maine
• Federal lead disclosure: https://www.epa.gov/lead/real-estate-disclosure