Contract for Deed (Land Contract) - Mississippi

CONTRACT FOR DEED (INSTALLMENT LAND CONTRACT)

(State of Mississippi)

RECORDING INFORMATION

[RESERVE A 3-INCH TOP MARGIN ON THE FIRST PAGE FOR THE RECORDER]

After Recording Return To: [NAME]; mailing address: [ADDRESS]; telephone: [PHONE]

Prepared By: [NAME OF DRAFTER]; physical business mailing address: [ADDRESS]; business or employment telephone: [PHONE]; Mississippi Bar No. [______ / NOT APPLICABLE]

Instrument: Contract for Deed (Installment Land Contract). Recording County: [COUNTY], Mississippi, Chancery Clerk land records.

INDEXING INSTRUCTIONS — FIRST PAGE (complete for every parcel in Exhibit A):

Match these entries to Exhibit A. Continue the instructions on the next page if necessary.

TABLE OF CONTENTS

1. Parties and Recitals
2. Definitions
3. Property; Legal Description
4. Purchase Price, Down Payment, and Installment Terms
5. Title; Deed Held Pending Payoff; Escrow
6. Possession
7. Taxes, Insurance, and Maintenance
8. Seller Covenants; Senior Lien
9. Default and Remedies; Forfeiture, Equitable Treatment, Buyer Cure
10. Prepayment
11. Risk of Loss; Condemnation
12. Recording (§§ 89-5-1, 89-5-5)
13. Assignment
14. Due-on-Sale / Garn-St. Germain
15. Required Disclosures
16. General Provisions
17. Execution and Acknowledgment
18. Exhibit A — Legal Description

1. PARTIES AND RECITALS

This CONTRACT FOR DEED (this "Contract") is made as of [__/__/____] (the "Effective Date") by and between:

• Seller: [SELLER LEGAL NAME], of [________________________________] ("Seller"); and
• Buyer: [BUYER LEGAL NAME], of [________________________________] ("Buyer").

Recitals

A. Seller holds fee simple title to the real property on Exhibit A (the "Property").
B. Seller agrees to sell and Buyer agrees to buy the Property on installments, with Seller retaining legal title as security and Buyer receiving possession and equitable title.
C. The Parties intend this Contract as an executory installment land contract under Mississippi law.

NOW, THEREFORE, the Parties agree as follows:

2. DEFINITIONS

"Applicable Law" — all federal and Mississippi laws applicable to the Property or this transaction, including Miss. Code Ann. Title 89.
"Equitable Mortgage" — the characterization a chancery court may apply to treat this Contract as a security instrument requiring foreclosure rather than strict forfeiture.
"Purchase Price" — the total price in Section 4.
"Unpaid Balance" — the Purchase Price less the Down Payment and all principal payments credited.

3. PROPERTY; LEGAL DESCRIPTION

3.1 Property. [PROPERTY ADDRESS], [CITY], [COUNTY] County, Mississippi, legally described on Exhibit A, with all improvements, easements, and appurtenances.

3.2 Homestead. ☐ The Property is the homestead of a married Seller; the Seller's spouse joins in this Contract per Miss. Code § 89-1-29. ☐ Not homestead / Seller unmarried.

3.3 Tax Parcel ID: [________________________________].

4. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

4.1 Purchase Price: $[____].

4.2 Down Payment: $[____] at execution.

4.3 Financed Balance: $[____], bearing interest at [____]% per annum.

4.4 Installments. Buyer shall pay $[____] per month on the [____] day of each month, beginning [__/__/____], until paid in full or the maturity/balloon date of [__/__/____].

4.5 Payment Schedule.

4.6 Application of Payments. First to late charges, then accrued interest, then principal.

4.7 Statement of Account. Seller shall provide Buyer a written annual statement showing payments, interest, principal, and the Unpaid Balance.

5. TITLE; DEED HELD PENDING PAYOFF; ESCROW

5.1 Retention of Legal Title. Seller retains legal title as security; Buyer holds equitable title and possession.

5.2 Deed Upon Payoff. Upon full payment and performance, Seller shall deliver a ☐ general warranty deed ☐ special warranty deed conveying marketable title, subject only to Permitted Encumbrances on Exhibit A.

5.3 Deed Escrow (recommended). [CHECK ONE]
☐ The Parties deposit an executed deed with [ESCROW AGENT], released to Buyer at payoff or to Seller only on a lawfully completed termination/foreclosure.
☐ No escrow; Seller delivers the deed at payoff.

6. POSSESSION

Buyer is entitled to exclusive possession on [__/__/____] and shall retain possession unless and until Buyer's interest is lawfully terminated under Section 9.

7. TAXES, INSURANCE, AND MAINTENANCE

7.1 Taxes. Buyer shall pay all property taxes and assessments before delinquency.
7.2 Insurance. Buyer shall maintain fire/hazard insurance of at least $[____], naming Seller as additional insured/loss payee.
7.3 Maintenance. Buyer shall keep the Property in good repair, free of waste, and in compliance with Applicable Law.

8. SELLER COVENANTS; SENIOR LIEN

8.1 Senior Lien (disclose). ☐ None. ☐ The Property is subject to a senior [deed of trust] held by [LENDER], balance approximately $[____], payment $[____]. Seller covenants to keep it current and apply Buyer's payments toward it.

8.2 No Impairment. Seller shall not further encumber the Property in a manner that impairs Buyer's equitable title or exceeds the Unpaid Balance.

9. DEFAULT AND REMEDIES; FORFEITURE, EQUITABLE TREATMENT, BUYER CURE

9.1 Events of Default. Buyer is in default upon (a) failure to pay an installment within [____] days after the due date; (b) failure to pay taxes/insurance; (c) waste; or (d) breach of any other material covenant uncured within [30] days after written notice.

9.2 Notice and Cure. Before exercising any remedy, Seller shall give Buyer written notice specifying the default and a reasonable opportunity to cure of not less than [30] days.

9.3 Seller Remedies. Upon an uncured, substantial default and Seller not being in default, Seller may, subject to Section 9.4 and Applicable Law:
(a) declare a forfeiture and termination of this Contract under the forfeiture clause and recover possession, retaining payments and improvements as liquidated damages to the extent equity permits;
(b) sue for past-due installments and damages;
(c) bring an action in chancery court for cancellation/termination and to quiet title; or
(d) where required by equity, proceed by foreclosure/judicial sale (treating this Contract as an equitable mortgage) with an accounting to Buyer for accrued equity.

9.4 Equitable Limitation on Forfeiture. The Parties acknowledge that a Mississippi chancery court may decline to enforce strict forfeiture where Buyer has paid substantial value, and may instead require foreclosure, a redemption period, or an accounting. Any forfeiture is subject to judicial review for unconscionability and penalty.

9.5 Buyer Cure / Reinstatement. Before any termination becomes final or any foreclosure sale is confirmed, Buyer may cure by paying all amounts then due, costs, and reasonable attorneys' fees, and curing other breaches, whereupon this Contract is reinstated.

9.6 Buyer's Remedies. On Seller's default, Buyer may seek specific performance, damages, or other relief at law or in equity.

10. PREPAYMENT

Buyer may prepay all or part of the Unpaid Balance at any time without penalty. Upon prepayment in full, Seller shall promptly deliver the deed and a release.

11. RISK OF LOSS; CONDEMNATION

11.1 Risk of Loss. From possession, risk of loss passes to Buyer; insurance proceeds applied to restoration or, at Buyer's election if not in default, to the Unpaid Balance.
11.2 Condemnation. Awards applied first to the Unpaid Balance, balance to Buyer.

12. RECORDING (§§ 89-5-1, 89-5-5)

12.1 Recording. This Contract (or a recordable memorandum of it) should be filed with the Chancery Clerk of [COUNTY] County. Miss. Code Ann. § 89-5-5 provides that listed conveyances and agreements take effect against creditors and subsequent purchasers for value without notice only from delivery to the clerk for recording. The parties should confirm the recording and indexing requirements for this Contract or memorandum with the receiving clerk.

12.2 Buyer's Right to Record. Buyer may record this Contract or a memorandum at Buyer's expense; Seller shall execute any acknowledgment necessary for recording.

13. ASSIGNMENT

13.1 By Buyer. Only with Seller's prior written consent, not unreasonably withheld; no assignment releases Buyer absent a written novation.
13.2 By Seller. Seller may assign its interest subject to this Contract.

14. DUE-ON-SALE / GARN-ST. GERMAIN

14.1 If a senior deed of trust contains a due-on-sale clause, this Contract may trigger acceleration. The Garn-St. Germain Act, 12 U.S.C. § 1701j-3, exempts certain transfers, but an installment land contract transferring occupancy is generally not exempt.

14.2 Seller represents: ☐ no senior lien with a due-on-sale clause; ☐ lender consent/waiver obtained; ☐ Buyer advised of and accepts the acceleration risk.

15. REQUIRED DISCLOSURES

15.1 Property Condition Disclosure. This Contract is an installment land sale contract. If it transfers real property with one to four dwelling units by or with the aid of a licensed real estate broker or salesperson and no § 89-1-501(2) exclusion applies, Seller shall deliver the statutory written property condition disclosure statement required by Miss. Code §§ 89-1-501–523 as soon as practicable before either party makes or accepts an offer under § 89-1-503(1)(b). Attach the completed statement and record its delivery. A general assertion about known defects does not replace the statutory statement.

☐ Covered transaction. Statutory statement attached as Exhibit [____]; delivered to Buyer on [__/__/____], before offer execution on [__/__/____].

☐ Statute does not apply. State the coverage condition or § 89-1-501(2) exclusion: [________________________________]. Seller nevertheless identifies known material defects in Attachment [____ / none identified]: [________________________________].

15.2 Lead-Based Paint (pre-1978). For covered target housing, Seller has provided the EPA pamphlet, a completed lead disclosure, known reports, and the federally required risk-assessment opportunity (42 U.S.C. § 4852d; 24 C.F.R. Part 35). ☐ Applies ☐ Not covered or exempt — N/A.

15.3 Right to Counsel. Buyer is advised to obtain independent Mississippi counsel, a title examination, and title insurance before signing.

16. GENERAL PROVISIONS

16.1 Governing Law. Mississippi law governs.
16.2 Entire Agreement; Amendment; Waiver. Entire agreement; amendments only in signed writing.
16.3 Severability. Invalid provisions reformed minimally; remainder in effect.
16.4 Notices. In writing, certified mail/overnight courier/hand delivery to Section 1 addresses.
16.5 Time of Essence. Time is of the essence.
16.6 Counterparts; Electronic Signatures. Permitted under the Mississippi Uniform Electronic Transactions Act.

17. EXECUTION AND ACKNOWLEDGMENT

IN WITNESS WHEREOF, the Parties execute this Contract as of the Effective Date.

SELLER:
________________________________
[SELLER NAME] — Date: [__/__/____]

SELLER'S SPOUSE (homestead joinder, if applicable):
________________________________
[SPOUSE NAME] — Date: [__/__/____]

BUYER:
________________________________
[BUYER NAME] — Date: [__/__/____]

Notary Acknowledgment — Mississippi

STATE OF MISSISSIPPI, COUNTY OF [____]

Personally appeared before me, the undersigned authority in and for the said county and state, on [__/__/____], within my jurisdiction, the within named [NAME(S)], who acknowledged that he/she/they executed the above and foregoing instrument.

________________________________
Notary Public
My commission expires: [__/__/____]

18. EXHIBIT A — LEGAL DESCRIPTION

[INSERT FULL LEGAL DESCRIPTION — metes and bounds or platted lot/block/subdivision, county, tax parcel ID. List Permitted Encumbrances.]

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

• Miss. Code Ann. § 89-5-5 — Priority timing for listed recorded instruments, quoted by the Mississippi Court of Appeals: https://courts.ms.gov/images/Opinions/CO166855.pdf
• Miss. Code Ann. § 89-1-29 — Homestead conveyance; spousal joinder: https://law.justia.com/codes/mississippi/title-89/chapter-1/
• Miss. Code Ann. Title 89 — Real and Personal Property: https://law.justia.com/codes/mississippi/title-89/
• 42 U.S.C. § 4852d; 24 C.F.R. Part 35 — Federal lead disclosure: https://www.epa.gov/lead
• 12 U.S.C. § 1701j-3 — Garn-St. Germain Act: https://www.law.cornell.edu/uscode/text/12/1701j-3