Contract for Deed (Land Contract) - New Jersey

CONTRACT FOR DEED (REAL ESTATE INSTALLMENT CONTRACT)

State of New Jersey

1. PARTIES AND RECITALS

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

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

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

1.2 Recitals. Seller owns the Property described below and agrees to convey title to Buyer, who agrees to pay the Purchase Price by periodic installments while Seller retains legal title and Buyer retains an equitable interest, until full performance under Section 9.

2. PROPERTY AND LEGAL DESCRIPTION

2.1 Property Address: [________________________________], [MUNICIPALITY], New Jersey [ZIP], in [____________] County.

2.2 Legal Description: [____________________________________________________________]

2.3 Block / Lot: Block [______] Lot [______]; Qualifier [______].

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

3. PURCHASE PRICE, DOWN PAYMENT, AND INSTALLMENT TERMS

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

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

3.3 Principal Balance. $[____________] (Purchase Price less down payment) at [____]% per annum, [☐ simple / ☐ amortized].

3.4 Installments.

3.5 Additional Charges/Fees. [________________________________].

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

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

3.8 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, Assessments, and Municipal Charges. From the Effective Date, [☐ Buyer / ☐ Seller] shall pay before delinquency all property taxes, assessments, and other municipal charges. Buyer shall 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.

6.5 Seller's Senior Mortgage / Buyer's Cure Right. If Seller defaults on any mortgage or lien encumbering the Property, Buyer may, at Buyer's option, make such payments, which shall be credited against Buyer's payments under this Contract. Seller shall not encumber the Property by a mortgage unless the indebtedness secured is less than the balance due under this Contract.

7. DEFAULT AND REMEDIES (NEW JERSEY)

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 Jersey law and equity:

(a) Foreclosure. Treat this Contract as a security instrument and foreclose Seller's equitable mortgage under N.J.S.A. 2A:50-1 et seq., with the Property sold and any surplus paid to Buyer, and Buyer retaining mortgagor-like cure/redemption rights;

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

(c) Termination/Forfeiture. Declare the Contract terminated and retain payments — only to the extent enforceable, recognizing that New Jersey equity bars forfeiture stripping a buyer of substantial equity and instead requires foreclosure or restitution; and/or

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

7.4 Buyer Equity / Foreclosure Protection. Where Buyer has substantial equity, New Jersey courts treat this Contract as an equitable mortgage and require Seller to proceed by foreclosure rather than forfeiture. This Section does not waive Buyer's equitable rights.

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 short form/memorandum) should be recorded in the office of the County Clerk or Register of Deeds and Mortgages for the county where the Property is located, under New Jersey's recording statutes (Title 46). Recording imparts notice to subsequent purchasers and mortgagees and protects Buyer's equitable interest.

8.2 Responsibility. [☐ Seller / ☐ Buyer] shall record this Contract or a short form within [____] days (20 days recommended) of the Effective Date and pay recording fees and any realty transfer fee due.

8.3 Acknowledgment. This Contract shall be acknowledged before a notary public or other authorized officer 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 Description of Liens. Existing mortgages/liens on the Property (name, address, and amount of each holder), or a statement that none exist: [________________________________].

9.3 Form of Deed. Upon full performance, Seller shall deliver a deed conveying all of Seller's right, title, and interest, by a [☐ Bargain and Sale Deed with Covenants / ☐ Warranty Deed / ☐ Quitclaim Deed], free of liens except those created or permitted by Buyer and those of record on the Effective Date.

9.4 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.]

9.5 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.

9.6 Pending Public-Agency Orders. Description of any pending order issued by a public agency arising from a statutory, regulatory, or ordinance violation against the Property, or a statement that none exists: [________________________________].

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 Lead-Based Paint (Covered Target Housing). Before Buyer is obligated under this Contract, Seller must complete the current federal process for covered target housing: provide the EPA lead-hazard pamphlet; disclose known lead-based paint and known lead-based-paint hazards; provide every available lead-hazard evaluation report; attach the large-type Lead Warning Statement and Buyer-signed acknowledgments to this Contract; and allow Buyer a 10-day risk-assessment or inspection opportunity unless the parties mutually agree to a different period. ☐ Federal coverage and any exemption reviewed ☐ Current warning/disclosure attachment completed ☐ Pamphlet and available reports delivered ☐ Inspection period completed, waived, or changed by mutual agreement.

13.2 Property Condition Disclosure. Seller shall provide a written disclosure of known material defects consistent with New Jersey common-law disclosure obligations and the New Jersey Real Estate Commission seller-disclosure practice. Otherwise conveyed [☐ AS-IS / ☐ with warranties: ____________].

13.3 Other Disclosures. [________________________________]

14. CONSUMER-PROTECTION GUIDANCE

• New Jersey treats installment land contracts as equitable mortgages: a seller generally must foreclose (not forfeit) where the buyer has substantial equity, and the buyer enjoys mortgagor-like cure/redemption protections (N.J.S.A. 2A:50-1 et seq.).
• Record the contract (a short form is acceptable) promptly — within 20 days is the prudent benchmark — to protect the buyer's interest.
• The "Real Estate Installment Contract Act" (A4686 / S3404) is PENDING, not enacted. If it becomes law it will add mandatory disclosures (parties, description, price, down payment, balance, installments, liens, tax responsibility, pending orders), a cap on seller mortgaging (debt must be less than the contract balance), and a 20-day recording requirement. Verify current status before relying on it. This template already incorporates those protective terms as best practice.
• Provide clear amortization/payoff statements; credit all payments.

15. GENERAL PROVISIONS

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

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: [________________________________]

NOTARY ACKNOWLEDGMENT

STATE OF NEW JERSEY )
) ss.
COUNTY OF [____________] )

Be it remembered that on [__/__/____], before me personally appeared [________________________________], who, being duly sworn, acknowledged that he/she/they signed, sealed, and delivered the foregoing instrument as his/her/their voluntary act and deed.

_______________________________
Notary Public / Attorney-at-Law of New Jersey
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

• New Jersey recording statutes, Title 46 (Property): https://lis.njleg.state.nj.us/nxt/gateway.dll?f=templates&fn=default.htm&vid=Publish:10.1048/Enu
• N.J.S.A. 2A:50-1 et seq. (Mortgage foreclosure): https://lis.njleg.state.nj.us/nxt/gateway.dll?f=templates&fn=default.htm&vid=Publish:10.1048/Enu
• Proposed "Real Estate Installment Contract Act," A4686 (PENDING): https://pub.njleg.state.nj.us/Bills/2026/A5000/4686_I1.HTM
• Proposed "Real Estate Installment Contract Act," S3404 (PENDING): https://pub.njleg.gov/Bills/2026/S3500/3404_I1.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