Contract for Deed Template, Free Download 2026

This Contract for Deed (the "Contract") is entered into as of [____________] by and between [____________] ("Seller" or "Vendor") and [____________] ("Buyer" or "Vendee"). Seller agrees to sell and convey, and Buyer agrees to purchase, the real property located at [____________], County of [____________], State of [____________], together with all improvements, fixtures, and appurtenances thereto (the "Property"), as more particularly described by legal description in Exhibit A attached hereto and incorporated by reference.

Seller represents that Seller is the fee simple owner of the Property and that the Property is free and clear of all liens, encumbrances, and defects in title except as follows: [____________] (the "Permitted Exceptions"). Seller further represents that Seller has full power and authority to enter into this Contract and to convey the Property in accordance with its terms. The Property is identified by Tax Parcel Number [____________] and is currently zoned [____________] under the applicable zoning ordinance.

The total purchase price for the Property shall be [$__________] (the "Purchase Price"). Buyer shall pay the Purchase Price as follows: (a) a down payment of [$__________] (the "Down Payment"), payable upon execution of this Contract, receipt of which is hereby acknowledged by Seller; and (b) the balance of [$__________] (the "Unpaid Balance"), payable in installments as set forth in Article 3. The Purchase Price does not include closing costs, recording fees, or transfer taxes, which shall be allocated as set forth in Article 6.

The Unpaid Balance shall be paid in [number] consecutive monthly installments of [$__________] each, which includes principal and interest as calculated in Section 4.1, commencing on [____________] and continuing on the same day of each month thereafter until the Unpaid Balance and all accrued interest are paid in full or until the Balloon Payment described in Article 9 becomes due, whichever occurs first. All payments shall be made to Seller at [____________] or such other address as Seller may designate in writing.

Payments received by Seller shall be applied first to accrued and unpaid interest, then to any escrow amounts for taxes and insurance as set forth in Section 5.2, then to principal, and finally to any late charges, fees, or other amounts due under this Contract. A late payment charge of [____________] percent ([___]%) of the overdue installment, or [$__________], whichever is [greater/lesser], shall be assessed on any payment not received within [number] days of the due date. Buyer shall have the right to prepay the Unpaid Balance, in whole or in part, at any time without penalty, provided that partial prepayments shall be applied to the most remote installment(s) due under this Contract.

Interest shall accrue on the Unpaid Balance at the rate of [____________] percent ([___]%) per annum, calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest rate is [fixed for the entire Contract term / adjustable as set forth in this Section]. Interest shall begin to accrue on the effective date of this Contract. An amortization schedule setting forth the allocation of each monthly payment between principal and interest is attached hereto as Exhibit B.

In no event shall the interest rate charged under this Contract exceed the maximum rate permitted by applicable state usury law. If any interest charged hereunder is found to exceed the maximum lawful rate, such excess shall be applied to the reduction of the Unpaid Balance and shall not be deemed a penalty or forfeiture. Seller and Buyer agree that the interest rate reflects fair market terms and is the result of arm's-length negotiation between the Parties.

Legal title to the Property shall remain in Seller's name until the Purchase Price has been paid in full, including all accrued interest and other amounts due under this Contract. Upon payment in full, Seller shall, within [number] days, execute and deliver to Buyer a general warranty deed conveying the Property to Buyer free and clear of all liens and encumbrances other than the Permitted Exceptions and any encumbrances caused by or through Buyer. Buyer shall receive equitable title to and possession of the Property upon execution of this Contract.

Seller shall not encumber the Property with any mortgage, lien, or other encumbrance during the term of this Contract without Buyer's prior written consent. If Seller has an existing mortgage on the Property, Seller shall continue to make all required payments and shall not permit the mortgage to become delinquent. Seller shall maintain an escrow account for the payment of real property taxes and insurance premiums, funded by Buyer's monthly escrow payments of [$__________] in addition to the installment payments set forth in Section 3.1, or Buyer shall [pay real property taxes and insurance directly as set forth in Sections 5.3 and 6.1].

Buyer shall, at Buyer's sole expense, maintain property insurance on the Property in an amount not less than the full replacement cost of all improvements, naming both Seller and Buyer as insureds with a loss payable clause in favor of Seller. Buyer shall also maintain liability insurance with limits of not less than [$__________] per occurrence. Buyer shall provide Seller with certificates of insurance and shall notify Seller at least thirty (30) days prior to any cancellation, non-renewal, or material change in coverage. If Buyer fails to maintain required insurance, Seller may obtain such insurance and add the cost to the Unpaid Balance.

Buyer shall pay all real property taxes, special assessments, and governmental charges levied against the Property as they become due and shall provide Seller with evidence of payment. If Buyer fails to pay any tax or assessment when due, Seller may pay such tax or assessment and add the amount, together with interest at the Contract rate, to the Unpaid Balance. Buyer shall be entitled to claim any available homestead exemption and all tax deductions for real property taxes and mortgage interest to the extent permitted by applicable federal and state tax law.

Buyer shall maintain the Property in good condition and repair at Buyer's sole expense, including all structural components, mechanical systems, appliances, landscaping, and all interior and exterior elements of the Property. Buyer shall not commit or permit any waste, damage, or destruction of the Property. Buyer shall comply with all applicable building codes, zoning ordinances, and governmental regulations. Buyer shall not make any structural alterations or improvements costing in excess of [$__________] without Seller's prior written consent, which shall not be unreasonably withheld.

Buyer shall not use the Property for any unlawful purpose or in any manner that would violate any applicable zoning ordinance, restrictive covenant, or governmental regulation. Seller shall have the right, upon reasonable prior notice, to inspect the Property [annually / semi-annually / quarterly] to verify that Buyer is maintaining the Property in accordance with this Contract. If Buyer fails to maintain the Property and does not cure such failure within [number] days of Seller's written notice, Seller may perform or cause to be performed any necessary maintenance or repairs and add the cost thereof to the Unpaid Balance.

The following shall constitute an "Event of Default" by Buyer: (a) failure to make any payment within [number] days of the due date; (b) failure to maintain insurance as required by Section 6.1; (c) failure to pay taxes or assessments as required by Section 6.2; (d) waste, damage, or destruction of the Property; (e) breach of any other material term of this Contract that remains uncured for [number] days after written notice from Seller; (f) Buyer's filing of a petition for bankruptcy or appointment of a receiver; or (g) any attempt to assign, transfer, or encumber Buyer's interest without Seller's prior written consent.

Upon the occurrence of an Event of Default, Seller shall provide Buyer with written notice specifying the default and the applicable cure period as required by applicable state law and this Contract. If the default is not cured within the applicable cure period, Seller may, at Seller's option: (a) declare a forfeiture and terminate this Contract, in which event Buyer shall forfeit all payments made as liquidated damages and shall vacate the Property within [number] days; (b) accelerate the entire Unpaid Balance and declare all amounts immediately due and payable; or (c) pursue any other remedy available under applicable state law, including foreclosure in the same manner as a real property mortgage. Seller's exercise of any remedy shall not waive any other remedy.

Notwithstanding the foregoing, Seller's right to declare a forfeiture shall be subject to all mandatory protections afforded to Buyer under applicable state contract for deed or installment land contract statutes, including without limitation any required notice period, right to cure, and right of redemption. If Buyer has paid a specified percentage of the Purchase Price as set forth in applicable state law, Seller may be required to pursue judicial foreclosure in lieu of forfeiture. Buyer shall have the right to cure any default up to and including the date of forfeiture or foreclosure sale, as applicable.

The entire remaining Unpaid Balance of the Purchase Price, together with all accrued and unpaid interest and any other amounts due under this Contract (the "Balloon Payment"), shall be due and payable in full on [____________] (the "Maturity Date"). If Buyer fails to pay the Balloon Payment on or before the Maturity Date, such failure shall constitute an Event of Default under Section 8.1, and Seller may exercise any of the remedies set forth in Section 8.2.

Buyer acknowledges that the monthly installment payments set forth in Article 3 will not fully amortize the Purchase Price and that a substantial Balloon Payment will be due on the Maturity Date. Buyer is advised to make arrangements to refinance the Balloon Payment through conventional mortgage financing well in advance of the Maturity Date. Upon Buyer's full payment of the Balloon Payment and all other amounts due under this Contract, Seller shall deliver a general warranty deed to Buyer in accordance with Section 5.1 within [number] days of receipt of payment.

This Contract shall be governed by and construed in accordance with the laws of the state in which the Property is located, including without limitation all applicable statutes governing contracts for deed, installment land contracts, or similar instruments. This Contract shall be recorded in the official public records of the county in which the Property is located, at Buyer's expense, to provide constructive notice of Buyer's equitable interest in the Property. Any dispute arising under this Contract shall be resolved in the state or federal courts of the county in which the Property is located.

This Contract constitutes the entire agreement between the Parties concerning the sale and purchase of the Property and supersedes all prior negotiations, representations, and agreements. This Contract may not be amended except by written instrument signed by both Parties. If any provision is held invalid, the remaining provisions shall remain in full force and effect. All notices shall be in writing and deemed given when delivered personally, by overnight courier, or by certified mail, return receipt requested. This Contract shall be binding upon the Parties and their respective heirs, successors, and assigns. This Contract may be executed in counterparts.