Contract for Deed (Land Contract)

LAND CONTRACT (CONTRACT FOR DEED / INSTALLMENT LAND CONTRACT)

(Wisconsin)

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. Vendee's Equitable Title; Recording
9. Default and Remedies (Wisconsin Strict Foreclosure — Wis. Stat. ch. 846 / § 846.30)
10. Title; Marketability; Title Insurance
11. Risk of Loss; Condemnation
12. Assignment; Due-on-Sale (Garn–St. Germain)
13. Disclosures (Lead-Based Paint; Real Estate Condition Report)
14. General Provisions
15. Execution; Notarial Acknowledgment
16. Exhibits and Schedules

1. DOCUMENT HEADER AND PARTIES

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

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

Vendor and Vendee are each a "Party" and collectively the "Parties."

Recitals

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

B. Vendee desires to purchase, and Vendor desires to sell, the Property on an installment basis under which Vendor retains legal title as security until the Purchase Price is paid in full, at which time Vendor will convey title by deed. The Parties acknowledge that upon signing and recording this Contract, Vendee acquires equitable title to the Property.

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

"Deed" – a [SELECT: Warranty Deed / Special Warranty Deed] in recordable form conveying the Property to Vendee subject only to the Permitted Exceptions, delivered upon payment in full.

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

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

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

"Redemption Period" – the period set by the court under Wis. Stat. § 846.30 (at least 7 working days) within which Vendee may redeem by paying the entire amount due in a strict-foreclosure action.

"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. Vendor agrees to sell and Vendee agrees to buy the real property located at [PROPERTY ADDRESS], [CITY], [COUNTY] County, Wisconsin, legally described in Exhibit A, together with all improvements, fixtures, easements, and appurtenances. The legal description satisfies the identification requirements of Wis. Stat. § 706.02(1)(b).

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, Vendee accepts the Property in its present "AS-IS" condition, subject to Vendee'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. Vendee 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. Vendee 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 Wisconsin 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 [__/__/____]. VENDEE MAY NEED TO REFINANCE OR OBTAIN OTHER FUNDS (E.G., A MORTGAGE) TO PAY THE BALLOON.

5.3 Prepayment. Vendee 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 Vendee's written request, Vendor 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. Vendor retains legal title to the Property as security until Vendee has paid the Purchase Price and performed all obligations in full. Vendee holds equitable title and the right of possession.

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

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

7. POSSESSION; TAXES, INSURANCE, AND MAINTENANCE

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

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

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

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

8. VENDEE'S EQUITABLE TITLE; RECORDING

8.1 Recording. This Contract (or a Memorandum of Land Contract in the form of Exhibit C) shall be recorded with the Register of Deeds of [COUNTY] County, Wisconsin, pursuant to Wis. Stat. § 706.05, to provide constructive notice of Vendee's equitable interest. The Contract satisfies the formal requisites of Wis. Stat. § 706.02, including, where the Property is homestead, the spousal joinder requirement of § 706.02(1)(f).

8.2 Transfer Fee; Recording Fees. Any real estate transfer fee (Wis. Stat. ch. 77, subch. II) and recording fees shall be paid by [SELECT: Vendee / Vendor] as required by law.

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

9. DEFAULT AND REMEDIES (WISCONSIN STRICT FORECLOSURE — Wis. Stat. ch. 846 / § 846.30)

9.1 Events of Default. Vendee is in default if Vendee (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. Before commencing a foreclosure action, Vendor shall give Vendee written notice of default specifying the default and a deadline to cure of not less than [____] days (the contract notice period; Wisconsin practice commonly permits a notice period as short as fifteen (15) days). Vendee may cure by paying all past-due amounts plus late charges and Vendor's reasonable costs.

9.3 WISCONSIN REMEDY — JUDICIAL FORECLOSURE; NO SELF-HELP FORFEITURE. The Parties acknowledge that a defaulted Wisconsin land contract is enforced through a court proceeding and that Vendor may NOT summarily cancel the Contract and retake possession by self-help. Vendor's remedies include:
a. Strict Foreclosure (Wis. Stat. ch. 846; § 846.30). Vendor may seek a judgment of strict foreclosure. If the court finds Vendee obligated and in default and that Vendor is entitled to strict foreclosure, the court shall set a Redemption Period of at least seven (7) working days from the date of the judgment hearing (or, if there is no hearing, from entry of the judgment order). During the Redemption Period, Vendee may redeem by paying the entire amount due under the Contract (including any balloon). No judgment of strict foreclosure is final until the court, after the Redemption Period expires, enters an order confirming that no redemption occurred and making the judgment absolute. Wis. Stat. § 846.30. If Vendee does not redeem, Vendor recovers title and may obtain a writ for possession; Vendor may not also sue Vendee for the unpaid balance, and Vendee does not recover payments or improvements.
b. Foreclosure by Sale / Specific Performance. Vendor may instead foreclose and seek the entire purchase price, with the Property sold at sheriff's sale after a court-set redemption period; if the sale yields less than the amount owed, Vendor may seek a deficiency judgment as permitted by ch. 846.
c. Breach of Contract. Vendor may sue for damages for breach, leaving Vendee in title and obligated for the balance.
d. Quiet Title / Ejectment. Where Vendee has paid little and defaulted, Vendor may bring a quiet-title action (with ejectment, and, for income property, appointment of a receiver) to recover ownership.

9.4 Equitable Title Preserved Until Confirmation. Vendee's equitable title remains until the court enters the order confirming default following expiration of the Redemption Period in a strict-foreclosure action.

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 as allowed by this Contract and law.

10. TITLE; MARKETABILITY; TITLE INSURANCE

10.1 Marketable Title at Payoff. At final payoff, Vendor shall convey marketable, insurable fee simple title subject only to the Permitted Exceptions.

10.2 Title Insurance. [SELECT: Vendor / Vendee] shall provide, at [ITS] expense, an owner's title insurance commitment from [TITLE COMPANY] showing title vested in Vendor as of the Effective Date, and an owner's policy issued to Vendee at payoff.

10.3 Vendor's Existing Liens. Vendor represents the Property is encumbered only by: [LIST or "none"]. Vendor 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 Vendee. Insurance proceeds shall be applied, at Vendee's election and subject to Vendor'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 Vendee, unless the Parties agree to restoration.

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

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

12.2 Assignment by Vendor. Vendor may assign its rights to payment subject to Vendee'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). Vendor represents that [SELECT: there is no underlying loan / the lender has consented / Vendee assumes this risk]. Vendor shall apply Vendee's payments to keep any underlying loan current.

13. DISCLOSURES (LEAD-BASED PAINT; REAL ESTATE CONDITION REPORT)

13.1 Lead-Based Paint (Pre-1978 Housing). If the dwelling was built before 1978, federal law (42 U.S.C. § 4852d) requires Vendor 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 Vendee a 10-day inspection opportunity. See Exhibit D. ☐ Not applicable (built 1978 or later).

13.2 Real Estate Condition Report (Wis. Stat. ch. 709). Vendor has delivered to Vendee the Real Estate Condition Report required by Wis. Stat. ch. 709 for residential property, except where the transaction is exempt.

13.3 Inspection. Vendee [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 Wisconsin.

14.2 Forum. Exclusive venue lies in the Circuit Court for [COUNTY] County, Wisconsin.

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 statutory redemption procedure 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 where required).

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.

VENDOR (SELLER):
________________________________________
[SELLER NAME]
Date: [__/__/____]

________________________________________
[SELLER SPOUSE NAME] (joining per Wis. Stat. § 706.02(1)(f) for homestead, if applicable)
Date: [__/__/____]

VENDEE (BUYER):
________________________________________
[BUYER NAME]
Date: [__/__/____]

________________________________________
[BUYER SPOUSE NAME] (joining per Wis. Stat. § 706.02(1)(f) for homestead, if applicable)
Date: [__/__/____]

Notary Acknowledgment

STATE OF WISCONSIN
COUNTY OF [____________]

Personally came before me this [____] day of [MONTH], [YEAR], the above-named [NAME(S)], to me known to be the person(s) who executed the foregoing instrument and acknowledged the same.

________________________________________
Notary Public, State of Wisconsin
My Commission [Expires / Is Permanent]: ___________
[SEAL]

This instrument was drafted by: [DRAFTER NAME]

16. EXHIBITS AND SCHEDULES

• Exhibit A – Legal Description of the Property
• Exhibit B – Permitted Exceptions
• Exhibit C – Memorandum of Land Contract (for recording)
• Exhibit D – Lead-Based Paint Disclosure (pre-1978 housing)
• Exhibit E – Real Estate Condition Report (Wis. Stat. ch. 709)
• Schedule 1 – Amortization Schedule

Sources and References

• Wis. Stat. § 846.30 (redemption period for land contracts; strict foreclosure) — https://law.justia.com/codes/wisconsin/chapter-846/section-846-30/
• Wis. Stat. ch. 846 (real estate foreclosure) — https://docs.legis.wisconsin.gov/statutes/statutes/846
• Wis. Stat. § 706.02 (formal requisites; homestead spousal joinder) — https://law.justia.com/codes/wisconsin/chapter-706/section-706-02/
• Wis. Stat. § 706.05 (recording of conveyances) — https://docs.legis.wisconsin.gov/document/statutes/706.05
• Wis. Stat. ch. 766 (Marital Property Act) — https://docs.legis.wisconsin.gov/document/statutes/766
• Steiner v. Wisconsin American Mut. Ins. Co., 2005 WI 72, 281 Wis. 2d 395, 697 N.W.2d 452
• Wisconsin Law Help — Land Contracts — https://www.wislawhelp.org/page/510/land-contracts
• 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