Our Contract Package

The exact template we use on every owner financed sale.

Nothing on this page is hidden or special per buyer. After you make your down payment, we fill in the highlighted blanks like your name and monthly payment with your information and your exact terms, then email the package to you to sign electronically. What you read here is what you sign.

This page is a courtesy copy for transparency, not legal advice. If anything is unclear, ask us. Or run it by your attorney, we are fine with that.

What’s in the package

When your down payment clears you get one email with everything in it. A welcome letter, simple signing instructions, the three legal documents below, a receipt for your down payment, and the authorization form that sets up your automatic monthly payments. You sign online through Dropbox Sign, no printer needed.

A Note About the Legal Documents

Personally, I hate legal documents that I don’t readily understand. Below is a simple explanation of what you are about to sign. This is not intended to be legal advice, as you should certainly contact your attorney regarding any of the legal documents contained herein. However, just for fun I wanted to give you my abridged version.

The Contract for the Sale and Purchase of Real Estate

This agreement simply outlines the terms and conditions of sale that you as buyer and myself as seller mutually agree upon. The main highlights of this contract are the purchase price, financing terms, receipt of your down payment, and our guarantee in writing. Without this agreement, there could be some misunderstanding of the terms we both agreed upon, and we certainly know that the key to any good relationship is excellent communication without ambiguity.

The Promissory Note

Basically, you promise to pay each month on time the specified monthly payment. There are no prepayment penalties. We have the monthly payment as a floor, but to save lots of money on interest we recommend paying as much as you can afford. Even $30 more each month makes a big difference towards paying down your note as fast as possible and saving money on the interest expense. If you don’t pay on time we are going to charge you.

If you continue to not pay on time we are going to threaten you and charge you even more money. Don’t make any payments and we will send a certified letter giving you 30 days to make payment before we terminate the contract and re-sell your land. Nevertheless, if you call us or e-mail us and let us know what is going on, we certainly can try to help you out.

Payments

Payments are due 30 days from your contract date and we will email you an invoice for the payment. The invoice will include a link so you can pay with a credit card. If you are late making payments we are going to charge extra fees. If you sell your property you still have to pay us the balance due. You have to reimburse us for your taxes on the property, or we can bill you monthly, let us know which you prefer.

The Land Contract

If you don’t make your payments we will give you 30 days notice and then have the right to take back the property without going to court. Don’t dump environmentally hazardous waste on the property.

In summary, all of these documents say the same thing. Make your minimum monthly payments on time each month. Failure to do so leads to ugly legal stuff, which will affect your credit rating. If you don’t want your property anymore, call me and we can work something out. I’d rather work with you than have to send nasty certified letters giving you 30 days to make payment in full.

We will eventually need your Social Security Number for tax purposes. I prefer to get this information over the phone for your security.

Promissory Note

For value received, your name(s) ("Borrower") promise to pay to seller entity ("Lender"), or to order, the principal amount of amount financed together with interest on the unpaid principal balance from first payment date until paid in full.

Principal and interest are payable as follows:

Payment. Borrower will pay Lender term in months months of principal and interest payments in the amount of monthly payment each, plus note servicing fee per month, plus estimated monthly taxes per month for estimated property taxes, for a total payment of total monthly payment per month, inclusive of interest, beginning first payment date, with interest calculated on the unpaid entire principal balance at interest rate per annum. This estimated payment is based on the assumption that all payments will be made exactly as scheduled. The actual final payment will be for all principal and accrued interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest, then to any late charges, then to principal. Borrower will pay Lender through our payment system, or at such other place as Lender may designate in writing.
Default Rate. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the interest rate on this Note by five (5) percentage points ("Default Rate"). The Default Rate of Interest shall thereafter supercede the rate set forth above, even if the default is subsequently cured.
Prepayment. Borrower may prepay this note, in whole or in part, at any time with no penalty.
Late Charge. If a payment is grace period or more calendar days late, Borrower will be charged late fee in addition to the regularly scheduled payment and all other sums owed.
Default. Each of the following shall constitute an event of default under this Note: Borrower fails to make any payment when due; Borrower fails to comply with or to perform any other material term, obligation, covenant or condition contained in any other agreement between Lender and Borrower, including but not limited to the Purchase and Sale Agreement, Promissory Note and Land Contract; Borrower defaults under any loan in favor of any other creditor, if such default may materially affect the Real Property securing this Note; or any statement made or furnished to Lender by Borrower in connection with this loan was false at the time the statement was made.

If any default, other than a default in payment, is curable and if Borrower has not been given a notice of breach of the same provision of this Note within the preceding twelve (12) months, it may be cured, and no event of default will have occurred, if Borrower, after receiving written notice from Lender demanding cure of such default, (1) cures the default within fifteen (15) days, or (2) if the cure requires more than fifteen (15) days, immediately initiates steps sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practicable, but not more than thirty (30) days with respect to any non-monetary default.

This Note is secured by a Land Contract of this same date.

The maker promises and agrees that in the case of a default in the payment of any sum required hereunder, or the failure to perform any covenant contained in the Land Contract securing this Note, or if the maker becomes insolvent, the unpaid principal balance and accrued interest shall, at the option of the holder of this Note, immediately become due and payable although the time of maturity as expressed in this Note may not have arrived.

Under this Note, the Borrower agrees to pay all costs, including reasonable attorneys’ fees, incurred in the collection of any unpaid amounts. The Borrower waives presentment for payment, demand, notice, protest, notice of protest, diligence, and non-payment of this Note.

Signed by your name

Land Sale Contract

Purchase and Sale. The undersigned buyer your name(s) ("Buyer") agrees to buy and the undersigned seller seller entity, or its assigns, ("Seller") agrees to sell all that tract or parcel of land described by parcel ID and legal description, with such improvements as are located thereon, together with all fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the "Property".

The Purchase Price to be paid is purchase price. The terms of this Land Sale Contract are as follows:

Seller warrants the Property to be free of all liens and taxes are current.
Seller warrants the Property to be available to the buyer at the time of this contract’s effective date.
Seller holds the right to limit the amount of timber removed from the property to include only that area needed to place a dwelling or structure, until the total price of the property including interest is paid.
Seller to hold the Title Warranty Deed to the Property until the Property is completely paid, and the Seller warrants that the Property Title will remain free from any loans, liens, or encumbrances through the period of payment.
The Seller, at the time of title transfer, will provide the Buyer with a marketable title.
Seller will pay the taxes on the Property each year and the Buyer will reimburse the Seller each year. Failure of the Buyer to reimburse the Seller for all taxes accrued from the date of this purchase within 60 days of the date due will void this Contract, and the remaining amount owed on the Property will become due within 30 days.
The Seller will notify the Buyer by email (Buyer must keep a valid email address on file) if the Buyer is at default.
The Seller will allow a grace period for the monthly payment of grace period days from the date due. If the payment has not been received within the grace period, a late fee penalty will be assessed to the payment.
The Seller reserves the right to take back possession of the Property if the Buyer is in default of the monthly payment by 35 days, at which time the Seller will notify the Buyer by email of default. The Buyer will have 30 days to bring payments current in order to cure the default. If full payment is not received at this time, the property will be considered foreclosed and the Buyer will forfeit all interest and payments made. If the Seller and Buyer cannot work out any problems associated with the said property and legal action is taken, the side which loses the said action will be responsible for all costs and legal fees associated with the legal action.
The terms of payment are as follows. Purchase price purchase price. Down payment down payment. The total amount financed plus interest is amount financed.
Payments of total monthly payment will be made monthly for a period of term in months months at an interest rate of interest rate simple interest. monthly payment of each payment will be applied to principal and interest, and the balance to the Note Servicing Fee of note servicing fee and the estimated taxes of estimated monthly taxes.
Payments will begin on first payment date and will continue until principal is paid in full.
There is no prepayment penalty. This note can be paid off at any time. Only the interest accrued to the date of payoff will be assessed.
Seller will record title Warranty Deed to the county of county, State of state, within 30 days of payoff.

Binding Agreement Date

This instrument becomes binding once the Buyer signs this instrument. I, your name, have accepted this offer subject to the terms noted in this Land Sale Contract as a legal and binding contract.

Agreement for the Sale and Purchase of Real Estate

No broker, vacant residential land. Warning: this contract has substantial legal consequences and the parties are advised to consult legal and tax counsel.

FOR VALUABLE CONSIDERATION OF TEN DOLLARS and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, your name(s) (herein "Buyer") and seller entity (herein "Seller") do hereby covenant, contract and agree as follows:

AGREEMENT TO SALE AND PURCHASE. Seller agrees to sell, and Buyer agrees to buy from Seller the property described by parcel ID and legal description.
SALES PRICE. The parties agree to the following sales price. Purchase price purchase price, down payment money down payment, new loan amount financed.
FINANCING. Owner financing. Seller agrees to finance amount financed of the purchase price pursuant to a promissory note from Buyer to Seller, bearing interest rate interest per annum, payable over a term of term in months months with even monthly payments of monthly payment, plus a note servicing fee Note Servicing Fee, plus estimated taxes of estimated monthly taxes, secured by a Land Contract with the first payment to begin first payment date.
DOWN PAYMENT MONEY. Buyer has deposited down payment as down payment money with Expand Your Land. Additionally, the buyer acknowledges that there is a one time processing fee of doc fee due at signing.
PROPERTY CONDITION. Buyer hereby represents that they have personally inspected and examined the above mentioned property and accepts the property in its as-is and present condition. This property is covered by a 90 day satisfaction guarantee as covered in other provisions below.
UTILITIES. The present condition of all utility access to the property is accepted by Buyer. Seller is not aware of the existence of wetlands, shoreland, or flood plain on or affecting the real property except as follows: None. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released from or on the real property by any person in violation of any law, nor of any underground storage tanks having been located on the real property at any time, except as follows: None.
CLOSING. The closing of the sale will be on or before closing date unless extended pursuant to the terms hereof. Closing may be extended to within 7 days after objections to matters disclosed in the title abstract, certificate or commitment or by the survey have been cured. The closing date may also be extended by written agreement of the parties.
TITLE AND CONVEYANCE. Seller is to convey title to Buyer by Warranty Deed. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special liens affecting the subject property which are not specifically assumed by Buyer herein. Title shall be good and marketable, subject only to covenants, conditions and restrictions of record, public and private utility easements and roads and rights-of-way, applicable zoning ordinances, protective covenants and prior mineral reservations, special and other assessments on the property if any, and general taxes for the current year and subsequent years. A title report shall not be provided to Buyer at closing. Buyer may elect to do their own title search at their own expense. If there are title defects, Seller shall notify Buyer within 5 days of closing and Buyer, at Buyer’s option, may either cancel this contract and receive back all earnest money or down payment monies deposited, accept title as is, or if the defects can be remedied by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at Seller’s expense. Seller represents that the property may be legally used as zoned and that no government agency has served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as stated herein.
APPRAISAL, SURVEY AND TERMITE INSPECTION. Any appraisal of the property shall be the responsibility of Buyer. A survey is not required.
POSSESSION AND TITLE. Prior to closing the property shall remain in the possession of Seller.
CLOSING COSTS AND EXPENSES. If closed through a title company, attorney and title company fees, title insurance, title abstract, appraisal, survey and all other closing costs are paid by Buyer, recording fees and transfer taxes are paid by Seller. No cost to buyer by closing directly.
PRORATIONS. Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available.
DEFAULT. If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either enforce specific performance, seek such other relief as may be provided by law, or both, or terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver evidence of clean title, Buyer may either extend the time for performance up to 15 days with the Closing Date extended as necessary, or terminate this contract as the sole remedy and receive a refund of the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either enforce specific performance, seek such other relief as may be provided by law, or both, or terminate this contract and receive the earnest money, thereby releasing both parties from this contract.
ATTORNEY’S FEES. The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.
REPRESENTATIONS. Seller represents that as of the Closing Date there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds, unless securing payment of any loans assumed by Buyer, and assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.
FEDERAL TAX REQUIREMENT. If Seller is a foreign person, as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a foreign person, then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.
AGREEMENT OF PARTIES. This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.
NOTICES. All notices from one party to the other must be in writing and are effective when mailed to, hand delivered at, or transmitted to the addresses listed for Seller and Buyer, including your address and your email.
ASSIGNMENT. This agreement may not be assigned by Buyer without the consent of Seller. This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties hereto.
PRIOR AGREEMENTS. This contract incorporates all prior agreements between the parties, contains the entire and final agreement of the parties, and cannot be changed except by their written consent. Neither party has relied upon any statement or representation made by the other party or any sales representative bringing the parties together. Neither party shall be bound by any terms, conditions, oral statements, warranties, or representations not herein contained. Each party acknowledges that he has read and understands this contract. The provisions of this contract shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto.
NO BROKER OR AGENTS. The parties represent that neither party has employed the services of a real estate broker or agent in connection with the property, or that if such agents have been employed, the party employing said agent shall pay any and all expenses outside the closing of this agreement.
EMINENT DOMAIN. If the property is condemned by eminent domain after the effective date hereof, the Seller and Buyer shall agree to continue the closing, or a portion thereof, or cancel this Contract. If the parties cannot agree, this contract shall remain valid with Buyer being entitled to be cancelled and the down payment money returned to Buyer.
RECORDING. This agreement may be recorded in the official records of county, state.
OTHER PROVISIONS. Our Guarantee: Expand Your Land will allow an additional inspection period of 90 days from date of down payment. If, for whatever reason, buyer is unsatisfied with the property, then Expand Your Land agrees to either exchange said property, or refund all monies minus closing costs, payment fees and accounting setup fees.

TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.

GOVERNING LAW. This contract shall be governed by the laws of the State of governing state.

EXECUTED date (the effective date). Signed by Buyer your name and Seller.

Receipt

Receipt of down payment Down Payment Money is acknowledged. Date date, signed by Jarod Bell, Expand Your Land.

Questions about any of this?

Call or text (817) 631-1858, or email Jarod@expandyourland.com. I’ll walk you through every line before you sign anything.

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