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#Post#: 270--------------------------------------------------
Contract for Deed
DIR By: Admin
Date: February 15, 2020, 9:18 am
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Hi. I'm Lloyd Kinder. Art and Patty Tite say you're the lawyer
handling their Contract for Deed between them and me. I copied
most of the contract by hand, which is below, along with my
questions/comments in double brackets after underscores
(____[[]]). I hope you can make modifications to the
contract that I've discussed below. I hope to hear back asap.
Good Day. Lloyd
.
CONTRACT FOR DEED
.
THIS CONTRACT, made and effective as of the ... day of ... A.D.,
2020, between ARTHUR G. TITE and PATRICIA A. TITE, Husband and
Wife, of 522 Orchard Avenue, Wood River, Illinois 62095,
hereinafter referred to as SELLER, and LLOYD KINDER, Golden
Eagle, Illinois, hereinafter referred to as BUYER.
.
NOW WITNESSETH:
1. If the Buyer shall make the payments and perform the
covenants hereinafter set out to be performed by the Buyer, then
the Seller hereby covenants and agrees to convey and assure to
the Buyer, in fee simple, free and clear of all mortgages and
encumbrances, except as hereinafter provided, by good and
sufficient Warranty Deed, the real estate described as follows,
subject to existing easements, restrictions and reservations now
appearing of record which may affect the premises and subject to
any liens, clouds, or encumbrances which become attached thereto
after the date hereof by reason of any act or omission or any
person or corporation other than the Seller:
.
____[[Can you get a Description of the property, Lots 18 & 19,
to include in the contract? At least include the address in the
contract, 336 South Main Street, Wood River, IL 62095, and
mention that it's the building and lot/s where Catalina
Andalucia {& I sometimes} has been residing under lease with
Seller since June 2018. Okay? The description below only
mentions the parts of the lot/s that were given to the city. Or
can you copy the description from Plat Book 7 page 44 for me?]]
.
Lots 18 and 19 in Block 8 in Wood River Heights, according to
the Plat thereof recorded in Plat Book 7 Page 44 in the
Recorder's Office of Madison County, Illinois, EXCEPT that part
of Lot 18 conveyed to the Village of Wood River, as recorded in
Book 500 at Page 349, in Madison County, Illinois, and described
as follows:
_Beginning at a point marking the Northwest Corner of Main
Street and Evans Avenue, also marking the Southeast corner of
Lot 18 block 8 of Wood River Heights Subdivision to Wood River,
Illinois;
_thence North along Main Street, a distance of 20 feet;
_thence Southwest a distance of 19 feet 2 inches to a point on
the South line of Lot 18 a distance of 5 feet from the point of
beginning;
_thence a distance of 5 feet along the South Line of Lot 18 to
the point of beginning;
.
ALSO EXCEPT that part of said Lot 18 conveyed to the City of
Wood River as recorded in Book 631 at Page 314 and described as
follows:
_Commencing at a point 6.3 feet West of Southeast corner of said
Lot 18;
_thence Northerly to a point on the East boundary of said Lot
18, 36 feet Northerly from the Southeast corner of said Lot;
_thence Southerly to a point on the South boundary of said Lot;
_thence Easterly 7 feet to the point of beginning.
Identical description in Book 3453 page 943
PIN: 19-2-08-28-11-202-730
Common address: 336 South Main Street
Wood River, Illinois 62095
.
The real estate being sold hereunder is AS IS. Buyer warrants
that he has inspected the premises, knows the condition thereof
and accepts the property as it currently exists; that he is
aware that said property was once a commercial business and it
is his intention to remodel/restore said property into living
quarters.
.
____[[See note under #15 re existing conditions of the
property.]]
.
This contract for deed has been prepared without examination of
title.
.
____[[When was it last examined and by whom?]]
.
2. The Buyer herein covenants and agrees to pay to the Seller or
such other persons as Seller may from time to time designate,
the sum of Sixty Thousand and 00/100 Dollars ($60,000), for the
purchase of the subject real estate. Buyer has paid the sum of
Ten Thousand Dollars ($10,000), receipt of which is hereby
acknowledged. The balance of Fifty Thousand Dollars ($50,000)
shall be paid at the rate of One Thousand Dollars ($1,000.00)
per month; each payment to include principal and interest of
Four (4%) percent per annum. The first monthly payment on this
contract shall be due on the 15th day of March, 2020, with all
subsequent monthly payments being due on or before the 15th day
of each month thereafter, until paid in full.
.kk
____[[I originally gave a deposit of $500 for the lease. I'd
like to know the disposition of that.
__Four (4%) percent -- Change to: Four percent (4%).]]
.
A. Buyer shall pay a delinquency charge equal to Ten percent
(10%) of the payment amount on each installment in default for
more than five (5) days after due.
____[[Changed to ten days, $40 {or less}]]
B. Buyer's schedule of payments is as set forth on the payment
schedule attached hereto and by this reference incorporated
herein as Exhibit "A".
C. Seller agrees that Buyer may withhold the real estate
transfer tax, based on the sales price of the property described
herein, from the last payment due under this contract.
D. Buyer shall make insurance payments and pay real estate taxes
which he is obligated to pay under this agreement when due and
shall provide Seller with proof of payment when the insurance
payments and real estate taxes are paid.
.
3. The Buyer may prepay the balance owed to the Seller under
this Contract at any time, without penalty.
.
4. The risk of loss from destruction of the premises shall pass
to the Buyer upon the execution of this Contract.
.
5. The Buyer covenants and agrees that any improvements
presently on the premises or subsequently upon the premises
shall be kept in reasonable good repair. The Buyer further
covenants and agrees that any improvements placed on the
premises by the Buyer shall constitute fixtures and remain with
the real estate. The Buyer covenants that Buyer will refrain
from taking any action which will result in a mechanic,
materialman or other lien being placed on the premises without
prior written consent of Seller. If consent for such
improvements is granted, all contracts for such improvements
shall contain a provision that no lien shall attach, sufficient
to preclude the attachment of a lien under Illinois law.
.
____[[improvements placed on the premises -- Change to:
improvements to fixed assets on the premises. {the structure,
fixtures, plumbing, boiler, central air, wiring....}]]
.
6. The Buyer covenants and agrees that insurance for any
improvements presently on the premises or subsequently placed
upon the premises for the full, reasonable value thereof, will
be maintained against catastrophes or calamities resulting from
fire, tornado, windstorm, or other similar casualty. The Buyer
shall pay the insurance premiums called for by such policy and
the said policy or policies on the premises shall show the
interest of the Seller to the extent of his interest. In the
event that the Buyer fails to procure and maintain the policies
of insurance as called for by this Contract, the Seller shall
have the option to procure such insurance policies and pay the
premiums thereon and add the cost thereof as provided above. Any
proceeds paid under such policy or policies shall be used to
restore the premises or applied against the unpaid balance of
this Contract, at Buyer's option.
.
7. Taxes for 2019, payable in 2020, shall be paid by the Seller.
Taxes for 2020, due and payable in 2021, shall be prorated as of
the date of this contract, with Seller paying their
proportionate share of said 2020 taxes, and the Buyer paying the
remaining share. The Buyer covenants and agrees to assume and
pay the taxes for all subsequent years, including any and all
special assessments or levies made against the premises as
called for by the Contract. In the event the Buyer fails to pay
said taxes and assessments, the Seller shall have the option to
pay the same and add the amount so paid to the balance due at
that time under the Contract, with interest thereon as provided
above.
.
8. Buyer covenants and agrees to comply with any statute,
ordinance, rule, code or regulation of any authority with
jurisdiction over the premises and which applied to the
premises.
.
9. The Buyer covenants and agrees not to sell, assign, pledge,
hypothecate, mortgage or otherwise transfer Buyer's interest
hereunder without the written consent of the Seller or Seller's
successor.
.
____[[I'd like the same to apply to Seller.]]
.
10. The Seller covenants and represents to the Buyer that no
notice of violation of any statute, ordinance, rule or
regulation applicable to the premises has been received by the
Seller or their agents, within ten (10) years before the date of
execution of this Contract.
.
11. The Seller covenants and agrees that 30 days prior to final
payment herein, the Seller will furnish the Buyer a complete
abstract of title to the said premises, brought down to date,
certified to by a competent Abstracter or a Title Insurance
Policy in the amount of the purchase price, showing merchantable
title to the premises in the Seller, free and clear of all
encumbrances, except existing easements, restrictions and
reservations of record, and allow the Buyer thirty (30) days to
have the said Abstract or Title Insurance Policy examined and,
if any defects arise affecting the merchantability of title, the
Seller shall be allowed thirty (30) days following notice of any
such defects to cure same and to make said title merchantable.
.
____[[I'd like the contract to include what are the existing
easements, restrictions and reservations of record, if any.]]
.
12. The Seller covenants and agrees that upon performance by the
Buyer of all terms and conditions hereunder, Seller will release
and waive all homestead and exemption rights in and to the
premises and the Deed called for herein shall contain a release
and waiver of all such homestead and exemption rights and Seller
will convey to the Buyer the above-described premises by
Warranty Deed.
.
13. Deed. Escrow Instructions. Seller agrees to execute a
Warranty Deed conveying said real estate to Buyer, which said
deed shall be deposited in escrow with Prairie State Title &
Escrow, 201 North Main St., P.O. Box 488, Brighton, IL. 62012,
as escrow agent, which deed shall be delivered to Buyer when all
payments to be made have been paid, all covenants to be
performed under this Agreement have been performed, and upon the
showing of satisfactory evidence of said compliance with all the
terms of this Agreement to the escrow agent. In the event any
default is made hereunder, said Warranty Deed shall be returned
to Seller by escrow agent.
.
Buyer agrees to execute a Quit Claim Deed conveying said real
estate to Seller, which deed shall be deposited with the escrow
agent.
.
Upon the notification by Seller to Buyer that default has been
made under the terms of this Agreement, the escrow agent is
hereby authorized by the parties hereto to make such
investigation as it deems proper in order to determine whether
or not default has bee made, and after making such investigation
and after having determined that a default has in fact been
made, said escrow agent shall return the Warranty Deed and
Buyer's Quit Claim Deed to Seller, his heirs, executors,
administrators, or assigns, and this Agreement shall thereafter
be null and void and of no effect whatsoever, and the property
as described herein shall remain in Seller and be unencumbered
by this contractual agreement.
.
The escrow agent shall be saved and held harmless from any
liability for any of its acts under the terms of this agreement,
including his investiagtion as to whether or not a default has
been made, except for such as may be it be willful.
.
____[[What does that mean: "such as may be it be willful?"]]
.
14. The Seller personally and for Seller's heirs, executors,
administrators, assigns and successors reserves the right at all
times to convey, sell, mortgage and transfer or dispose of legal
title to the said premises, and all interest in this contract to
such person or persons as desired, subject to the rights of the
Buyer, under this Contract, and the Buyer and Buyer's successors
in interest and legal representatives agree to accept the deed
of conveyance thereunder from any and all such subsequent title
holders. Seller shall promptly make all payments on all notes or
obligations for which the premises is used as security and
insure that at no time shall the total balance due on all loans
made by the Seller exceed the balance due on this Contract. At
Buyer's request, proof that Seller is making such payments shall
be promptly provided to Buyer.
.
____[[See note under #9. I'd like there to be no encumbrances on
the property that may interfere with my use of it.]]
.
15. In the event that Buyer fails to make any one or more of the
installment payments called for in Paragraph 2 of the Contract
for Deed, or if the Buyer permits any such installments to
remain due for a longer period than ninety (90) days, or if the
Buyer fails to pay the amounts due for taxes, or assessments on
time, of if the Buyer shall fail to keep the premises in
reasonably good repair and free from waste, or if the Buyer
shall fail to perform any covenant of the contract on the part
of the Buyer to be performed, then, at the election of the
Seller, and upon the filing by Seller of a copy of a 90-Day
Notice of Intent to Declare Forfeiture sent Registered or
Certified Mail, Return Receipt Requested, setting forth the
basis for the forfeiture, or, upon such notice served personally
upon the Buyer, or served upon him in such other manner as is
permitted by statute for the service of civil process in
Illinois, a forfeiture shall exist and all payments which have
been made by Buyer up to that time shall automatically be
forfeited to Seller as rent for the use and enjoyment of the
premises, and Seller shall become discharged at law or in equity
from all obligations hereunder, the Buyer shall have thereafter
no right, title, interest, claim or demand in or to said real
estate as against subsequent purchasers, mortgagees, mechanics,
or other lien claimants, or other judgment creditors of Seller.
The parties agree that this procedure constitutes an agreement
for deed in lieu of foreclosure pursuant to 735 ILCS 5/15-1401.
.
____[[a. "in reasonably good repair and free from waste" seems
too vague and potentially problematic. The existing condition of
the building may need to be included in the contract. Some floor
joists on the northeast and central east sides of the main floor
are rotten and need to be replaced. The ceiling in the restroom
area of the main floor is unfinished. There are no restroom
fixtures or working faucets in the main floor restroom. Banister
to upstairs is loose. Some doors in apartment B need fixing. The
floors have old carpet squares and old linoleum. Some of the
kitchen cabinets and drawers need fixing. Central air on main
floor is not ducted to the apartments. Upstairs porch is
uninsulated. There's no fire escape for apartment A. The yard
has an old fence and a missing gate on the north side. The
brickwork on the building has cracks.]]
.
To the extent that State Law requires other conditions or
methods for Seller to terminate this Contract for Deed that are
inconsistent with the provisions in this Contract for Deed, then
the provisions of State Law shall control.
.
The right of termination if exercised by Seller, shall be
without prejudice to any other remedy to which Seller may be
entitled either at law, or in equity, or under Contract for
Deed, regardless of when or how exercised. In the event Buyer
damages said property, other than natural wear and tear thereto,
Seller may have a remedy against Buyer for the damage sustained
to the real estate.
.
16. Time is of the essence of this Contract and the extension of
time of payment of any one or more of the installments provided
for herein, or the permitting of same to remain due for a longer
period than herein provided, shall not act as a waiver of
subsequent breaches of this Contract by the Buyer and shall not
preclude or prevent the Seller from treating the Contract as at
an end upon any subsequent breach or at any time that the Buyer
shall fail or refuse to make payment of any of the installment
payments called for within the time herein specified, or upon
the failure of the Buyer to comply with the provisions herein
regarding the payment of insurance premiums and taxes, or upon
the failure of the Buyer to comply with any of the other
provisions of the contract.
.
[[The last two clauses seem redundant and potentially
problematic, i.e. after "or upon...". They seem well enough
covered in #7.]]
.
17. It is mutually agreed that the covenants and conditions of
this Contract shall extend to and be obligatory upon the heirs,
administrators, executors, assigns, and successors of the
respective parties.
.
18. It is further mutually agreed that in the event that either
the Buyer or the Seller is required to file any legal action to
enforce this Contract, or any part thereof, the prevailing party
shall be entitled to recover attorney's fees, to be fixed by the
Court, and costs of the action.
.
19. It is further mutually agreed that this Contract expresses
in full the agreement between the parties hereto concerning the
premises and that any modification of the provisions of this
Contract must be in writing and signed by both Buyer and Seller.
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