Contract for Deed (Land Contract) - Mississippi

CONTRACT FOR DEED (INSTALLMENT LAND CONTRACT)

(State of Mississippi)

RECORDING INFORMATION

After Recording Return To:
[NAME]
[ADDRESS]

Prepared By:
[NAME OF DRAFTER], Mississippi Bar No. [______]

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)
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)

12.1 Recording. This Contract (or a memorandum of it) should be filed with the Chancery Clerk of [COUNTY] County for recording. Under Miss. Code Ann. § 89-5-1, a conveyance of land is not good against a purchaser for value without notice, or any creditor, unless recorded; after filing, priority is determined by time of filing. Recording protects Buyer's interest by giving constructive notice.

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. Seller has disclosed all known material/latent defects in the Property's condition. ☐ Disclosure provided ☐ Not applicable.

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.]

Sources and References

• Miss. Code Ann. § 89-5-1 — Recording of conveyances; priority: https://law.justia.com/codes/mississippi/title-89/chapter-5/article-1/section-89-5-1/
• 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