Contract for Deed (Land Contract)

CONTRACT FOR DEED (LAND CONTRACT / BOND FOR DEED)

State of New Hampshire

1. PARTIES AND RECITALS

1.1 Parties. This Contract for Deed (the "Contract") is effective [__/__/____] (the "Effective Date") between:

Seller (Vendor): [________________________________], address [________________________________] ("Seller"); and

Buyer (Vendee): [________________________________], address [________________________________] ("Buyer").

1.2 Recitals. Seller owns the Property described below and agrees to sell, and Buyer agrees to buy, on installment terms. Seller retains legal title as security until the Purchase Price is paid in full, then conveys title by the deed described in Section 9.

2. PROPERTY AND LEGAL DESCRIPTION

2.1 Property Address: [________________________________], [CITY/TOWN], New Hampshire [ZIP], in [____________] County.

2.2 Legal Description: [____________________________________________________________]

2.3 Map/Lot No.: [________________________________]

2.4 Included Items: All improvements, fixtures, appurtenances, and: [________________________________].

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

3.1 Purchase Price. $[____________] (the "Purchase Price").

3.2 Down Payment. $[____________] on or before the Effective Date, receipt [☐ acknowledged / ☐ to be paid].

3.3 Financed Balance. $[____________] (the "Principal Balance") at [____]% per annum, [☐ simple / ☐ amortized].

3.4 Installments.

3.5 Place of Payment. To Seller at the Section 1.1 address or as Seller directs.

3.6 Late Charge. A payment not received within [____] days incurs $[____________] or [____]%, to the extent permitted by New Hampshire law.

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

4. PREPAYMENT

4.1 Buyer may prepay all or part of the Principal Balance at any time without penalty, unless stated here: [________________________________].

4.2 Partial prepayments apply to principal and do not postpone later installments unless Seller agrees in writing.

5. POSSESSION

5.1 Buyer is entitled to possession on [__/__/____] and retains it so long as not in default.

5.2 Buyer holds an equitable interest; legal title passes only on full performance under Section 9.

6. TAXES, INSURANCE, AND MAINTENANCE

6.1 Taxes and Assessments. From [__/__/____], Buyer shall pay before delinquency all taxes, assessments, and charges, and furnish proof on request.

6.2 Insurance. Buyer shall maintain fire/extended-coverage insurance of not less than $[____________], naming Seller as additional insured/loss payee, and deliver evidence.

6.3 Maintenance and Waste. Buyer shall keep the Property in good repair, comply with all laws, and commit no waste. No material structural alterations without Seller's written consent.

6.4 Seller's Right to Cure. Seller may advance unpaid taxes/insurance; advances are added to the Principal Balance at the contract rate.

7. DEFAULT AND REMEDIES (NEW HAMPSHIRE)

7.1 Events of Default. (a) failure to pay any installment, tax, or insurance premium when due; (b) breach of any other covenant; (c) waste or abandonment; or (d) Buyer's insolvency or bankruptcy.

7.2 Notice and Right to Cure. Before exercising any remedy, Seller shall give Buyer written Notice of Default specifying the default and cure required, by certified mail to Buyer's last known address. Buyer shall have [____] days (recommended not less than 30 days) to cure a monetary default and [____] days for a non-monetary default.

7.3 Seller's Remedies. If not cured, Seller may, subject to New Hampshire law and equity:

(a) Forfeiture / Termination. Declare the Contract terminated and retain payments as liquidated damages — only to the extent the retained amount does not exceed Seller's actual damages measured by the fair market value of the Property at default relative to the contract price; any excess is subject to restitution to Buyer;

(b) Acceleration and Suit. Accelerate the unpaid balance and sue for it;

(c) Foreclosure / Judicial Sale. Treat this Contract as a security instrument and enforce Seller's lien by judicial sale, with surplus paid to Buyer; and/or

(d) Specific Performance or any other remedy at law or equity.

7.4 Buyer Equity / Restitution. Where Buyer has substantial equity, New Hampshire equity may bar strict forfeiture and require Seller to return value exceeding Seller's actual damages.

7.5 No Waiver. Acceptance of a late or partial payment is not a waiver of any default or remedy.

8. RECORDING

8.1 Recording of Contract. This Contract (or a memorandum of it) should be recorded in the Registry of Deeds for the county where the Property is located, pursuant to RSA 477:3-a. Until recorded, the conveyance/contract is not effective against bona fide purchasers for value.

8.2 Responsibility. [☐ Buyer / ☐ Seller] shall record this Contract or a memorandum within [____] days and pay recording fees and any real estate transfer tax due (RSA ch. 78-B).

8.3 Execution and Acknowledgment. This Contract shall be signed by the granting party and acknowledged before a justice, notary public, or commissioner as required by RSA 477:3, and shall show the Buyer's mailing address, to be eligible for recording.

9. TITLE AND CONVEYANCE OF DEED

9.1 Title Held by Seller. Seller retains legal title until the Purchase Price and all sums are paid in full.

9.2 Form of Deed. Upon full performance, Seller shall convey by a [☐ Warranty Deed / ☐ Quitclaim Deed / ☐ Fiduciary Deed], free of liens except those created or permitted by Buyer and those of record on the Effective Date.

9.3 Escrow of Deed (Optional). [☐ The parties place an executed deed with [____________] (the "Escrow Agent"), delivered on full payment and released to Seller only on a properly noticed, uncured default.]

9.4 Title Evidence. Seller shall, on request, furnish [☐ a title commitment / ☐ an owner's title policy / ☐ an abstract] showing marketable title subject to the Exhibit B exceptions.

9.5 Existing Liens. The Property [☐ is / ☐ is not] encumbered by a mortgage. If encumbered, holder: [________________________________]; balance ≈ $[____________]. Seller covenants to keep any senior lien current and deliver clear title at payoff.

10. RISK OF LOSS

10.1 Buyer bears the risk of loss from and after the date of possession.

10.2 Insurance/condemnation proceeds shall be applied, at [☐ Buyer's / ☐ Seller's] election consistent with the parties' interests, to restoration or to the Principal Balance.

11. ASSIGNMENT

11.1 Buyer shall not assign or convey any interest without Seller's prior written consent (not unreasonably withheld). [☐ Consent not required.]

11.2 Seller may assign the right to receive payments; any assignee takes subject to Buyer's rights.

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

12.1 A senior mortgage may contain a due-on-sale clause. Under the federal Garn-St. Germain Act, 12 U.S.C. § 1701j-3, a lender generally may accelerate upon transfer by installment land contract, subject to certain exemptions. The parties acknowledge this risk.

13. DISCLOSURES

13.1 Radon, Arsenic, and Lead Paint Notice (RSA 477:4-a). Prior to execution, Seller shall provide Buyer the statutory radon, arsenic, and lead paint notification under RSA 477:4-a, and Buyer shall acknowledge receipt by signing it. [☐ RSA 477:4-a notification provided and acknowledged.]

13.2 Water Supply / Sewage Disposal Disclosure (RSA 477:4-c). Seller shall disclose the water supply and sewage disposal information required by RSA 477:4-c. [☐ Provided and acknowledged.]

13.3 Lead-Based Paint (pre-1978 housing). If built before 1978, federal law (42 U.S.C. § 4852d) requires Seller to disclose known lead-based paint/hazards, provide the EPA pamphlet, and attach the Lead-Based Paint Disclosure. [☐ Built before 1978 — disclosure attached / ☐ 1978 or later — N/A.]

13.4 Property Condition. Seller shall disclose known material defects. Otherwise conveyed [☐ AS-IS / ☐ with warranties: ____________].

13.5 Other Disclosures. [________________________________]

14. CONSUMER-PROTECTION GUIDANCE

• New Hampshire has no dedicated installment-land-contract statute; forfeiture is tempered by the fair-market-value damages measure and by equity, so a buyer with substantial equity is not necessarily stripped of all value on default.
• Record the contract or a memorandum (RSA 477:3-a) to protect the buyer against bona fide purchasers; ensure proper acknowledgment under RSA 477:3.
• Deliver the RSA 477:4-a (radon/arsenic/lead) and RSA 477:4-c (water/sewage) notifications BEFORE execution.
• Provide clear amortization/payoff statements; credit all payments.
• Account for the NH real estate transfer tax (RSA ch. 78-B) on the transaction.

15. GENERAL PROVISIONS

15.1 Governing Law. Laws of the State of New Hampshire.

15.2 Entire Agreement. Entire agreement; amendable only in a signed writing.

15.3 Time of the Essence. Time is of the essence.

15.4 Notices. In writing, personally or by certified mail to the Section 1.1 addresses.

15.5 Severability. Invalid provisions do not affect the remainder.

15.6 Binding Effect. Binds heirs, successors, and permitted assigns.

15.7 Counterparts. May be executed in counterparts, including electronic signatures.

16. SIGNATURES AND ACKNOWLEDGMENT

SELLER:

Signature: _______________________________ Date: [__/__/____]

Printed Name: [________________________________]

BUYER:

Signature: _______________________________ Date: [__/__/____]

Printed Name: [________________________________]

Buyer's mailing address (required by RSA 477:3): [________________________________]

NOTARY ACKNOWLEDGMENT

STATE OF NEW HAMPSHIRE )
COUNTY OF [____________] )

The foregoing instrument was acknowledged before me on [__/__/____] by [________________________________].

_______________________________
Justice of the Peace / Notary Public
My commission expires: [__/__/____]

EXHIBIT A — LEGAL DESCRIPTION

[____________________________________________________________]

EXHIBIT B — PERMITTED EXCEPTIONS

1. Real estate taxes and assessments not yet due and payable.
2. [________________________________]

Sources and References

• N.H. Rev. Stat. Ann. § 477:3 (Execution): https://www.gencourt.state.nh.us/rsa/html/XLVIII/477/477-3.htm
• N.H. Rev. Stat. Ann. § 477:3-a (Recording): https://www.gencourt.state.nh.us/rsa/html/XLVIII/477/477-3-a.htm
• N.H. Rev. Stat. Ann. § 477:4-a (Radon, Arsenic, Lead Paint Notification): https://www.gencourt.state.nh.us/rsa/html/XLVIII/477/477-4-a.htm
• N.H. Rev. Stat. Ann. § 477:4-c (Water Supply; Sewage Disposal): https://www.gencourt.state.nh.us/rsa/html/XLVIII/477/477-4-c.htm
• Garn-St. Germain Act, 12 U.S.C. § 1701j-3: https://www.law.cornell.edu/uscode/text/12/1701j-3
• Lead-Based Paint Disclosure (42 U.S.C. § 4852d; 24 CFR Part 35): https://www.epa.gov/lead/real-estate-disclosure