Contract for Deed (Land Contract)

REAL ESTATE CONTRACT (CONTRACT FOR DEED / INSTALLMENT LAND CONTRACT)

(Washington)

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 Fulfillment Deed; Delivery at Payoff
7. Possession; Taxes, Insurance, and Maintenance
8. Buyer's Interest; Recording
9. Default and Remedies (Washington Statutory Forfeiture — RCW ch. 61.30 — and Foreclosure)
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
16. Exhibits and Schedules

1. DOCUMENT HEADER AND PARTIES

This Real Estate Contract (also known as a Contract for Deed 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 for payment of the purchase price, at which time Seller will convey title by deed. The Parties intend this to be a "real estate contract" within the meaning of RCW 61.30.010(1).

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 Washington-chartered banks are authorized or required to close.

"Cure" / "Cure the Default" – to perform the obligations described in a Notice of Intent to Forfeit that are in default, to pay the costs and attorneys' fees prescribed in this Contract, and to make all payments first becoming due after the notice is given, as provided in RCW 61.30.010(2) and RCW 61.30.090.

"Declaration of Forfeiture" – the notice described in RCW 61.30.070(2).

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

"Fulfillment Deed" / "Deed" – a [SELECT: Statutory Warranty Deed / Bargain and Sale Deed] in recordable form conveying the Property to Buyer subject only to the Permitted Exceptions, delivered upon payment in full.

"Notice of Intent to Forfeit" – the notice described in RCW 61.30.070(1).

"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, Washington, legally described in Exhibit A, together with all improvements, fixtures, easements, and appurtenances.

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 Washington law (see RCW ch. 19.52); 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 FULFILLMENT 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 the contract purchaser's interest and the right of possession.

6.2 Escrow of Fulfillment Deed (Optional). [SELECT ONE]
☐ Seller shall deposit an executed, recordable Fulfillment Deed with [ESCROW AGENT/TITLE COMPANY] to be held in escrow and delivered to Buyer upon payment in full.
☐ The Fulfillment 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 Fulfillment 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 INTEREST; RECORDING

8.1 Recording. This Contract (or a Memorandum of Real Estate Contract in the form of Exhibit C) shall be recorded with the Auditor/Recording Officer of [COUNTY] County, Washington, pursuant to RCW 65.08.070 (a race-notice statute), to provide constructive notice of Buyer's interest.

8.2 Excise Tax; Fees. Any real estate excise tax (RCW ch. 82.45) and recording fees shall be paid by [SELECT: Buyer / Seller] as required by law.

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 (WASHINGTON STATUTORY FORFEITURE — RCW ch. 61.30 — AND FORECLOSURE)

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 Seller's Election of Remedy. Upon a default, Seller may, to the extent permitted by RCW 61.30.020, elect either (a) statutory forfeiture under RCW ch. 61.30, or (b) judicial foreclosure of this Contract as a mortgage, or pursue any other remedy not limited by the chapter. A judicial foreclosure is NOT a forfeiture under the chapter (RCW 61.30.010(4)).

9.3 WASHINGTON STATUTORY FORFEITURE PROCEDURE (RCW ch. 61.30). If Seller elects forfeiture:
a. Notice of Intent to Forfeit. Seller shall record and give a Notice of Intent to Forfeit containing the items required by RCW 61.30.070(1) — including Seller's contact information; a description of the contract (parties, date, recording number); the legal description; each default; an itemized statement of amounts and actions required to cure; the effect of forfeiture; Buyer's right to contest or seek an extension by court action filed and served before the Declaration is recorded; and Buyer's right to request a court-ordered public sale.
b. Cure Period — NOT LESS THAN 90 DAYS. The notice must state that the contract will be forfeited if all defaults are not cured by a date not less than ninety (90) days after the Notice of Intent to Forfeit is recorded (or any longer period specified in this Contract). RCW 61.30.070(1)(e).
c. Timing of Notices. The Notice of Intent to Forfeit shall be given not later than ten (10) days after it is recorded. The Declaration of Forfeiture may not be given before the cure period expires and shall be given not later than three (3) days after it is recorded. RCW 61.30.060.
d. Declaration of Forfeiture. If the default is not cured before the cure period expires, Seller may forfeit by giving and recording a Declaration of Forfeiture containing the items in RCW 61.30.070(2).
e. Effect; Surrender of Possession. Upon forfeiture, all of Buyer's rights under this Contract are canceled, all right, title, and interest of Buyer (and of persons claiming through Buyer to the extent elected) are terminated, all sums previously paid are retained by Seller, and Buyer's interest in improvements and unharvested crops/timber belongs to Seller. Buyer and all occupants whose interests are forfeited must surrender possession ten (10) days after the Declaration of Forfeiture is recorded. RCW 61.30.070(1)(f); RCW 61.30.100.
f. Restraint; Public Sale. Buyer may seek to restrain or enjoin the forfeiture (RCW 61.30.110) and may request a court-ordered public sale where the fair market value substantially exceeds the debt and senior liens (RCW 61.30.120; RCW 61.30.070(1)(j)).

9.4 Acceleration / Reinstatement. Acceleration of the Unpaid Balance and Buyer's right to cure and reinstate are governed by RCW 61.30.090.

9.5 Cumulative Remedies; Attorneys' Fees. Remedies are cumulative to the extent permitted by RCW ch. 61.30. The prevailing Party in any enforcement action is entitled to reasonable attorneys' fees and costs as allowed by this Contract and law.

10. TITLE; MARKETABILITY; TITLE INSURANCE

10.1 Marketable Title at Payoff. At final payoff, 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, an owner's title insurance commitment from [TITLE COMPANY] showing title vested in Seller as of the Effective Date, and an owner's policy issued to Buyer at payoff.

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 or deed of trust, 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 (Pre-1978 Housing). If the dwelling was built before 1978, federal law (42 U.S.C. § 4852d) requires Seller to disclose known lead-based paint and hazards, provide available records, deliver the EPA pamphlet "Protect Your Family From Lead in Your Home," and allow Buyer a 10-day inspection opportunity. See Exhibit D. ☐ Not applicable (built 1978 or later).

13.2 Property Condition Disclosure (RCW 64.06). Seller has delivered to Buyer the Washington Seller Disclosure Statement ("Form 17") required by RCW ch. 64.06 describing the condition of the Property, except where the transaction is exempt under RCW 64.06.010.

13.3 Inspection. Buyer [SELECT: has inspected / has [____] days to inspect] the Property, including any radon or other 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 Washington.

14.2 Forum. Exclusive venue lies in the Superior Court for [COUNTY] County, Washington (see RCW 61.30.130 as to venue for actions under the chapter).

14.3 Notices. Notices shall be in writing and given by the methods authorized in RCW 61.30.050 for required statutory notices; all other notices may be 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 under RCW ch. 61.30 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 (and any joining spouse/domestic partner).

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

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

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

________________________________________
[SELLER SPOUSE / DOMESTIC PARTNER NAME] (joining per RCW 26.16.030, if applicable)
Date: [__/__/____]

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

________________________________________
[BUYER SPOUSE / DOMESTIC PARTNER NAME] (joining per RCW 26.16.030, if applicable)
Date: [__/__/____]

Notary Acknowledgment

STATE OF WASHINGTON
COUNTY OF [____________]

I certify that I know or have satisfactory evidence that [NAME(S)] is/are the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and purposes mentioned in the instrument.

Dated: [__/__/____]

________________________________________
Notary Public in and for the State of Washington
Residing at: ___________
My Commission Expires: ___________
[SEAL]

16. EXHIBITS AND SCHEDULES

• Exhibit A – Legal Description of the Property
• Exhibit B – Permitted Exceptions
• Exhibit C – Memorandum of Real Estate Contract (for recording)
• Exhibit D – Lead-Based Paint Disclosure (pre-1978 housing)
• Exhibit E – Washington Seller Disclosure Statement (Form 17, RCW 64.06)
• Schedule 1 – Amortization Schedule

Sources and References

• RCW ch. 61.30 (Real Estate Contract Forfeitures) — https://app.leg.wa.gov/rcw/default.aspx?cite=61.30&full=true
• RCW 61.30.060 (time limitations) — https://law.justia.com/codes/washington/title-61/chapter-61-30/section-61-30-060/
• RCW 61.30.070 (contents of notices; 90-day cure) — https://app.leg.wa.gov/rcw/default.aspx?cite=61.30.070
• RCW 65.08.070 (recording; race-notice) — https://law.justia.com/codes/washington/title-65/chapter-65-08/section-65-08-070/
• RCW 26.16.030 (community property; spousal joinder) — https://app.leg.wa.gov/rcw/default.aspx?cite=26.16.030
• RCW ch. 64.06 (Seller Disclosure / Form 17) — https://app.leg.wa.gov/rcw/default.aspx?cite=64.06
• 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