#309 ARTICLES OF AGREEMENT FOR DEED (INSTALLMENT CONTRACT) RIDER TO REAL ESTATE SALES CONTRACT VERSION 5.0 SELLER: BUYER: REAL ESTATE ADDRESS: OFFER DATE: ACCEPTANCE DATE: Pursuant to Section 43 of the Multi-Board Residential Real Estate Contract 5.0 or Section 38 of the Vacant Land Sales Contract approved by the Heartland REALTOR® Organization, (the “ Real Estate Contract”), the Par ties desire to en ter into Ar ticles of Agreement for Deed. The Parties propose inclusion, among other matters to be agreed upon by their respective attorneys, of the following provisions and other provisions consistent with the aforesaid Real Estate Contract. The Articles of Agreement for Deed shall be prepared by the attorney for the Seller and submitted to the Buyer’s attorney (or Buyer if not represented by an attorney) for approval within 5 business days of the date of this Rider. The Parties acknowledge and agree that they will not be legally bound to the purchase and sale of the Real Estate until they have signed the Articles of Agreement for Deed, and each agrees not to act in reliance on the existing Real Estate Contract or this Rider. If there is no agreement on the final Articles of Agreement for Deed within 15 days from the date hereof, either party may elect to declare the Contract null and void by giving notice of termination to the other. 1. PURCHASE PRICE (a) The Purchase Price and earnest money provisions are set forth in Section 4 of the Residential Real Estate Contract 5.0 or Section 3 of the Vacant Land Contract, as the case may be. (b) Down payment (including earnest money) payable at initial closing, plus or minus prorations, is: $________________________. [Note: The total of (b) plus (c) must equal the total Purchase Price.] (c) Initial principal balance of the Articles of Agreement is: $ , which will be amortized years and paid in equal monthly pa yments of approximately $_____________, including over interest at _____% per annum, payable on the _____ day of each month starting ___________________, 20 _____. The unpaid principal balance will be due ________ years after initial closing, if not sooner paid. Monthly interest is paid in arrears. (d) Additional principal reduction payments shall be made as follows: ______________________________ ___________________________________________________________________________________. (e) Buyer may prepay the principal balance in whole or in part at any tinme or from time to ti me without penalty. (f) Monthly payment [(check one): _____ shall _____ shall not] be m ade to a payment escrow. [(Check one: _____ Seller _____ Buyer _____ Seller and Buyer equally] will pay the cost of the payment escrow. (g) 1/12 of the last known annual real estate taxes [(check one): _____ shall _____ shall not] be escrowed monthly with [(check one): _____ Seller _____ escrow agent] by Buyer. (h) 1/12 of the last known insurance premiums [(check one): _____ shall _____ shall not] be escrowed monthly with [(check one): _____ Seller _____ escrow agent] by Buyer. (i) Buyer, or the escrow agent if one is used, [(check one): _____ shall _____ shall not] pay a portion of each monthly payment directly to Seller’s mortgagee and remit the balance of each payment to Seller. (j) Penalty for failure to make installment payment: _______% of monthly installment payment if not received within 10 days of the due date. 2. INSURANCE (a) Buyer shall keep the real estate insured at all times in an amount equal to a sum not less than the unpaid balance due Seller, except that if full insurable value of the Real Estate is less the balance of purchase price, then at such full insurable value, and shall maintain liability coverage in an amount reasonably acceptable to Seller, which amount shall be specified in the final Articles of Agreement for Deed. (b) Buyer shall deliver to Seller at initial closing an insurance policy on which the premium has been paid for one year and naming Seller an additional insured. 3. MORTGAGE [The information in (a) through (d) shall be provided by Seller.] (a) Seller [(check one): _____ does _____ does not] have an existing mortgage. (“Mortgage” includes lines of credit, home improvement loans or other loans secured by liens against the real estate.) (b) Name(s) of mortgage holder(s):________________________________________________________. . (Seller will provide such documentation as is Present total outstanding balance: $ reasonably requested by Buyer’s attorney in order to verify loan balances.) (c) There [(check one): _____ is _____ is not] a tax and insurance escrow w ith Seller’s mortgage. Balance in escrow: $ . (d) Copy of all Seller’s notes and mortgages will be provided within 5 business days of the date of this Rider to Buyer’s attorney (or Buyer if not represented by an attorney) for review of “due on sale” and “maturity date” provisions. (e) Seller shall have the right to refinance the property so long as the total balance of all encumbrances is less than _______% of the outstanding installment contract balance. 4. TITLE SECURITY [Check appropriate provision.] (a) _____ Title will be placed in a land trust at ___ ____________________________________________. [(Check one): _____ Seller _____ Buyer _____ Seller and Buyer equally] will pay cost of trust. (b) _____ Deed or letter of direction and customary transfer documents will be deposited in escrow with and held pursuant to an Escrow Agreement approved by the attorney for the respective party. IT IS STRONGLY RECOMMENDED THAT EACH PARTY RETAIN LEGAL COUNSEL TO ASSIST WITH CONTRACT REVIEW AND THE PREPARATION OF THE FINAL ARTICLES OF AGREEMENT FOR DEED AND RELATED DOCUMENTS. BUYER: SELLER: FOR USE WHEN OFFICE POLICY ALLOWS Note: This Rider is intended for use only with the form entitled “Multi-Board Residential Real Estate Contract 5.0” or “Vacant Land Sales Contract” prepared for use in McHenry County, Illinois, and approved by the Heartland REALTOR® Organization. This form has been approved by the Heartland REALTOR® Organization. Copyright © 2008-2012, Heartland REALTOR® Organization. All Rights Reserved. 2009 EDITION.
© Copyright 2020