Contract for Deed (Land Contract) - South Carolina

CONTRACT FOR DEED (BOND FOR TITLE / INSTALLMENT LAND CONTRACT)

(South Carolina)

TABLE OF CONTENTS

1. Document Header and Parties
2. Definitions
3. Property; Legal Description
4. Purchase Price; Down Payment; Installment Terms
5. Interest; Amortization; Balloon; Prepayment
6. Legal Title; Escrow of Deed; Delivery at Payoff
7. Possession; Taxes, Insurance, and Maintenance
8. Buyer's Equitable Interest; Recording
9. Default and Remedies (South Carolina Bond for Title — Equity of Redemption)
10. Title; Marketability; Title Insurance
11. Risk of Loss; Condemnation
12. Assignment; Due-on-Sale (Garn–St. Germain)
13. Disclosures (Lead-Based Paint; Property Condition)
14. General Provisions
15. Execution; Notarial Acknowledgment / Witnessing
16. Exhibits and Schedules

1. DOCUMENT HEADER AND PARTIES

This Contract for Deed (also known as a Bond for Title or Installment Land Contract, this "Contract") is made as of [__/__/____] (the "Effective Date") by and between:

a. Seller: [SELLER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [SELLER ADDRESS] ("Seller"); and

b. Buyer: [BUYER LEGAL NAME], a [STATE] [ENTITY TYPE OR "individual"], whose address is [BUYER ADDRESS] ("Buyer").

Seller and Buyer are each a "Party" and collectively the "Parties."

Recitals

A. Seller is the fee simple owner of the real property described in Exhibit A (the "Property").

B. Buyer desires to purchase, and Seller desires to sell, the Property on an installment basis under which Seller retains legal title as security until the Purchase Price is paid in full, at which time Seller will convey title by deed.

C. The Parties acknowledge that this Contract is a bond for title / executory contract to convey under South Carolina law and that a purchaser in possession may have an equitable right of redemption depending on case-specific equity factors.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

2. DEFINITIONS

"Business Day" – any day other than Saturday, Sunday, or a legal holiday on which South Carolina-chartered banks are authorized or required to close.

"Closing" / "Final Closing" – delivery of the Deed upon payment in full of all amounts due under this Contract.

"Deed" – a [SELECT: General Warranty Deed / Limited (Special) Warranty Deed] in recordable form conveying the Property to Buyer subject only to the Permitted Exceptions.

"Default Rate" – [____]% per annum or the maximum rate permitted by law, whichever is less.

"Equity" – the difference between the fair market value of the Property and the Unpaid Balance, plus the value of Buyer's improvements.

"Permitted Exceptions" – the matters listed in Exhibit B.

"Purchase Price" – the amount set forth in Section 4.1.

"Unpaid Balance" – the principal portion of the Purchase Price remaining unpaid at any time, together with accrued interest and other charges.

3. PROPERTY; LEGAL DESCRIPTION

3.1 Property. Seller agrees to sell and Buyer agrees to buy the real property located at [PROPERTY ADDRESS], [CITY], [COUNTY] County, South Carolina, legally described in Exhibit A, together with all improvements, fixtures, easements, and appurtenances [and any manufactured/mobile home identified in Exhibit A].

3.2 Personal Property Included. The following personal property is included, free of liens: [LIST OR "None"].

3.3 Condition; "As-Is." Except as expressly stated herein and in the disclosures attached, Buyer accepts the Property in its present "AS-IS" condition, subject to Buyer's inspection rights in Section 13.

4. PURCHASE PRICE; DOWN PAYMENT; INSTALLMENT TERMS

4.1 Purchase Price. The total Purchase Price is $[____________].

4.2 Down Payment. Buyer shall pay a down payment of $[____________] on or before [__/__/____].

4.3 Financed Amount. The amount financed (Purchase Price less down payment) is $[____________] (the "Financed Amount").

4.4 Installment Payments. Buyer shall pay the Financed Amount, with interest, in installments as follows:

4.5 Application of Payments. Payments are applied first to late charges and costs, then to accrued interest, then to principal.

4.6 Maximum Lawful Rate. No provision shall require interest exceeding the maximum permitted by South Carolina law; any excess shall be applied to principal or refunded.

5. INTEREST; AMORTIZATION; BALLOON; PREPAYMENT

5.1 Interest. Interest accrues on the Unpaid Balance at the rate stated in Section 4.4 from the Effective Date.

5.2 Balloon Disclosure. [IF APPLICABLE] THIS CONTRACT CONTAINS A BALLOON PAYMENT. A SUBSTANTIAL FINAL PAYMENT OF $[__________] WILL BE DUE ON [__/__/____]. BUYER MAY NEED TO REFINANCE OR OBTAIN OTHER FUNDS TO PAY THE BALLOON.

5.3 Prepayment. Buyer may prepay all or part of the Unpaid Balance at any time [SELECT: without penalty / subject to a prepayment charge of [____]%]. Partial prepayments are applied to principal and do not postpone any scheduled payment.

5.4 Amortization Statement. Upon Buyer's written request, Seller shall provide a statement of the Unpaid Balance and amounts applied to principal and interest.

6. LEGAL TITLE; ESCROW OF DEED; DELIVERY AT PAYOFF

6.1 Retention of Legal Title. Seller retains legal title to the Property as security until Buyer has paid the Purchase Price and performed all obligations in full. Buyer holds equitable title and the right of possession.

6.2 Escrow of Deed (Optional). [SELECT ONE]
☐ Seller shall deposit an executed, recordable Deed with [ESCROW AGENT/TITLE COMPANY] to be held in escrow and delivered to Buyer upon payment in full.
☐ The Deed shall be delivered by Seller directly upon payment in full; no deed is escrowed.

6.3 Delivery at Payoff. Within [____] Business Days after Buyer pays all amounts due, Seller shall execute and deliver the Deed and record a satisfaction/release of this Contract at [SELECT: Seller's / Buyer's] expense.

7. POSSESSION; TAXES, INSURANCE, AND MAINTENANCE

7.1 Possession. Buyer is entitled to possession on [__/__/____].

7.2 Taxes and Assessments. Buyer shall pay, before delinquency, all real property taxes and assessments accruing on or after the possession date, and shall provide Seller proof of payment upon request.

7.3 Insurance. Buyer shall keep the improvements insured against fire and other casualty for not less than [SELECT: replacement cost / the Unpaid Balance], naming Seller as an additional insured / loss payee as its interest appears.

7.4 Maintenance. Buyer shall maintain the Property in good repair, commit no waste, and comply with all laws and any homeowners' association requirements.

8. BUYER'S EQUITABLE INTEREST; RECORDING

8.1 Recording (S.C. Code § 30-7-10). Seller shall cause this Contract (or a Memorandum of Bond for Title in the form of Exhibit C) to be recorded with the Register of Deeds (or Clerk of Court) of [COUNTY] County, South Carolina, pursuant to S.C. Code § 30-7-10. A contract for the purchase and sale of real property is valid against subsequent purchasers and creditors for value without notice only from the day and hour it is recorded.

8.2 Recording Costs. Recording fees and any deed recording fee/transfer tax shall be paid by [SELECT: Buyer / Seller] as agreed.

8.3 No Encumbrance by Seller. Seller shall not further encumber or convey the Property in a manner impairing Buyer's interest, and shall apply Buyer's payments to keep any underlying loan current (see Section 12.3).

9. DEFAULT AND REMEDIES (SOUTH CAROLINA BOND FOR TITLE — EQUITY OF REDEMPTION)

9.1 Events of Default. Buyer is in default if Buyer (a) fails to pay any installment within [____] days after its due date; (b) fails to pay taxes or insurance; (c) commits waste; or (d) breaches any other material covenant and fails to cure within [____] days after written notice.

9.2 Notice and Right to Cure. Seller shall give Buyer written notice of default specifying the default and a cure period of not less than [30] days. Buyer may cure by paying all past-due amounts plus late charges and Seller's reasonable costs.

9.3 SOUTH CAROLINA REMEDY — EQUITABLE RIGHT OF REDEMPTION; FORECLOSURE WHERE BUYER HAS EQUITY. The Parties acknowledge:
a. A purchaser in possession under a bond for title / installment contract may have an equitable right of redemption — the right to pay the amount due under the Contract and retain the Property — but the right is not absolute and is determined by case-specific factors including the length of default, the number and amount of payments made, and the value of improvements (Lewis v. Premium Investment Corp., 351 S.C. 167, 568 S.E.2d 361 (2002); Cody Discount, Inc. v. Merritt, 368 S.C. 246, 629 S.E.2d 697 (Ct. App. 2006)).
b. Where Buyer has acquired substantial Equity, Seller's proper remedy is to bring an action in the Court of Common Pleas (typically referred to the Master-in-Equity) to foreclose Buyer's interest, recognizing Buyer's equity of redemption and providing for a judicial sale — NOT summary cancellation that would forfeit Buyer's equity.
c. Where there is insufficient Equity (the Property is worth no more than the amount owed), a court may declare the Contract cancelled, terminate Buyer's interest, and award Seller possession.

9.4 Forfeiture / Cancellation (Use With Caution). [OPTIONAL] If permitted under Section 9.3(c), Seller may declare this Contract cancelled and retain payments made as liquidated damages and reasonable rental value; however, the Parties acknowledge a South Carolina court may grant Buyer the equity of redemption and require a foreclosure proceeding where Buyer has Equity.

9.5 Cumulative Remedies; Attorneys' Fees. Remedies are cumulative to the extent permitted by law. The prevailing Party in any enforcement action is entitled to reasonable attorneys' fees and costs.

10. TITLE; MARKETABILITY; TITLE INSURANCE

10.1 Marketable Title at Payoff. At Final Closing, Seller shall convey marketable, insurable fee simple title subject only to the Permitted Exceptions.

10.2 Title Insurance. [SELECT: Seller / Buyer] shall provide, at [ITS] expense, a title insurance commitment and an owner's policy issued to Buyer at Final Closing.

10.3 Seller's Existing Liens. Seller represents the Property is encumbered only by: [LIST or "none"]. Seller shall not allow any superior lien to go into default.

11. RISK OF LOSS; CONDEMNATION

11.1 Risk of Loss. From the possession date, risk of loss passes to Buyer. Insurance proceeds shall be applied, at Buyer's election and subject to Seller's security interest, to restoration or to the Unpaid Balance.

11.2 Condemnation. Any condemnation award shall be applied first to the Unpaid Balance, with the balance to Buyer, unless the Parties agree to restoration.

12. ASSIGNMENT; DUE-ON-SALE (GARN–ST. GERMAIN)

12.1 Assignment by Buyer. Buyer may not assign this Contract without Seller's prior written consent, which shall not be unreasonably withheld.

12.2 Assignment by Seller. Seller may assign its rights to payment subject to Buyer's rights hereunder.

12.3 Due-on-Sale Warning (Garn–St. Germain). If the Property is subject to an existing mortgage, entering into this Contract may trigger a "due-on-sale" clause permitting the lender to accelerate under the federal Garn–St. Germain Depository Institutions Act (12 U.S.C. § 1701j-3). Seller represents that [SELECT: there is no underlying loan / the lender has consented / Buyer assumes this risk]. Seller shall apply Buyer's payments to keep any underlying loan current.

13. DISCLOSURES (LEAD-BASED PAINT; PROPERTY CONDITION)

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 has delivered the South Carolina Residential Property Condition Disclosure Statement required by the Residential Property Condition Disclosure Act (S.C. Code § 27-50-10 et seq.), unless an exemption applies.

13.3 Inspection. Buyer [SELECT: has inspected / has [____] days to inspect] the Property, including any radon testing, and accepts it subject to such inspection.

14. GENERAL PROVISIONS

14.1 Governing Law. This Contract is governed by the laws of the State of South Carolina.

14.2 Forum. Exclusive venue lies in the Court of Common Pleas for [COUNTY] County, South Carolina.

14.3 Notices. Notices shall be in writing and delivered by hand, certified mail (return receipt requested), or nationally recognized overnight courier to the addresses in Section 1.

14.4 Time of the Essence. Time is of the essence as to all payment obligations, subject to the notice and cure rights and the equity-of-redemption rule in Section 9.

14.5 Entire Agreement; Amendment. This Contract and its Exhibits are the entire agreement and may be amended only in a writing signed by both Parties.

14.6 Severability. If any provision is held invalid, the remainder shall remain enforceable.

14.7 Counterparts; Electronic Signatures. This Contract may be executed in counterparts and by electronic signature.

14.8 Successors and Assigns. This Contract binds and benefits the Parties and their permitted successors and assigns.

15. EXECUTION; NOTARIAL ACKNOWLEDGMENT / WITNESSING

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date. South Carolina recordation requires the signature of the grantor, two subscribing witnesses, and a probate or acknowledgment.

SELLER:
________________________________________
[SELLER NAME]
Date: [__/__/____]

BUYER:
________________________________________
[BUYER NAME]
Date: [__/__/____]

WITNESSES:
________________________________________ ________________________________________
Witness 1 Witness 2

Acknowledgment / Probate

STATE OF SOUTH CAROLINA
COUNTY OF [____________]

I, the undersigned notary public, do hereby certify that [NAME(S)] personally appeared before me this [____] day of [MONTH], [YEAR], and acknowledged the due execution of the foregoing instrument.

________________________________________
Notary Public, State of South Carolina
My Commission Expires: ___________
[SEAL]

16. EXHIBITS AND SCHEDULES

• Exhibit A – Legal Description of the Property
• Exhibit B – Permitted Exceptions
• Exhibit C – Memorandum of Bond for Title (for recording under S.C. Code § 30-7-10)
• Exhibit D – Lead-Based Paint Disclosure (pre-1978 housing)
• Exhibit E – South Carolina Residential Property Condition Disclosure Statement
• Schedule 1 – Amortization Schedule

Sources and References

• S.C. Code § 30-7-10 (recording essential to validity) — https://law.justia.com/codes/south-carolina/title-30/chapter-7/section-30-7-10/
• S.C. Code § 29-3-10 (mortgagor deemed owner; foreclosure and sale) — https://www.scstatehouse.gov/code/t29c003.php
• Lewis v. Premium Investment Corp., 351 S.C. 167, 568 S.E.2d 361 (2002) — https://law.justia.com/cases/south-carolina/supreme-court/2002/
• Cody Discount, Inc. v. Merritt, 368 S.C. 246, 629 S.E.2d 697 (Ct. App. 2006) — https://law.justia.com/cases/south-carolina/court-of-appeals/2006/
• Wahl v. Hutto, 249 S.C. 500, 155 S.E.2d 1 (1967)
• S.C. Code § 27-50-10 et seq. (Residential Property Condition Disclosure Act) — https://www.scstatehouse.gov/code/t27c050.php
• Garn–St. Germain Act, 12 U.S.C. § 1701j-3 — https://www.law.cornell.edu/uscode/text/12/1701j-3
• Lead-Based Paint, 42 U.S.C. § 4852d — https://www.law.cornell.edu/uscode/text/42/4852d