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 pre-payment
penalties. We offer prepayment incentives which save you lots of money. We offer 10% discount off sales price if paid off within 24 months of contract 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.
Automatic Payments:
We have received a one time setup fee of $299 then $10 /month for the privilege of managing your note and
providing a year end statement for tax purposes.
To keep our prices low, we are only going to accept automatic payments. You must subscribe to automatic
payments either via Credit or Debit Card. Let me know if you need other arrangements for auto-payment other
than those mentioned above.
If you are late making payments we are going to charge extra fees.
If you sell your property you still have to pay us.
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. You must pay off the contract prior to making any improvements. We don’t mind if you go visit it a couple weeks out of the year if you let us know ahead of time. However you are not allowed to live on the property during the contract. You must get prior written approval from us before making improvements such as building a shed. Absolutely no clearing of timber or dumping allowed.
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 rather than have to send
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.
LAND SALE CONTRACT
Purchase and Sale: The undersigned buyer «Buyer_Name» (“Buyer”) agrees to buy and the undersigned seller Tomar Holdings LLC, or its assigns, (“Seller”) agrees to sell all that tract or parcel of land, with such improvements as are located thereon, described as follows:
«Legal»
______________________________________________________________________________________
together with all fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property”.
Items that will NOT remain with the property: N/A
The Seller address is: 1021 N. Market Plz, Ste 107-163, Pueblo West, CO 81007
Phone: 1-888-886-2446 / 661-916-5335
The Buyer address is: «Buyers_Address»
Buyer Phone: «Buyers_Phone» Buyer Email: «Buyers_Email»
Purchase Price and Method of Payment: Buyer warrants that, except as may be otherwise provided herein, Buyer will have at the time this agreement is signed and notarized, sufficient cash to complete the purchase of the Property, except for that portion the Seller has authorized for payment on the terms outlined in this Land Sale Contract.
The Purchase Price to be paid is «Sold_Price»
The terms of this Land Sale Contract are as follows:
1. Seller warrants the Property to be free of all liens and taxes are current.
2. Seller warrants the Property to be available to the buyer at the time of this contracts effective date.
3. 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.
4. 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.
5. The Seller, at the time of title transfer, will provide the Buyer with a marketable title.
6. 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.
7. The Seller will allow a grace period for the monthly payment of 15 days from the date due. If the payment has not been received within the grace period, a 5 percent penalty of the monthly payment will be assessed to the payment.
8. 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.
9. 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.
10. You must pay off the contract prior to using the land. We don’t mind if you go visit it a couple weeks out of the year if you let us know ahead of time. However you are not allowed to live on the property during the contract. You must get prior written approval from us before making improvements such as building a shed. No clearing of timber or dumping allowed.
LAND SALE CONTRACT
10. The terms of payment are as follows:
A) Purchase price «Sold_Price»
B) Down payment will be «Down»
C) The total amount financed plus interest is «Finance_Price»
D) Payments of «Monthly» will be made monthly for a period of «Term» Months at an interest rate of zero percent simple interest.
E) Monthly payment of «Monthly» includes processing fee $10 and property taxes of «Taxes_Monthly»
F) Payments will begin on «Monthly» and will continue until paid in full
G) Payments will be given a 15 Day Grace period. After the Grace period there will be a 5% penalty per the Promissory Note.
H) There is no prepayment penalty. This note can be paid off at any time. Early Pay off Incentive offered of $10% off if purchase price if paid off in 12 months. Seller will record title Special Warranty Deed to the county of «County_State», within 30 days of payoff.
Binding Agreement Date
This instrument becomes binding once the Buyer signs this instrument.
We/I, «Buyer_Name», have accepted this offer subject to the terms noted in this Land Sale Contract as a legal and binding contract.
BUYER:
_______________________________________ ____________________________________
«Buyer_Name»
SELLERS:
_______________________________________
Thomas N Sevigny, Manager
____________________________________
PROMISSORY NOTE
Principal amount: «Finance_Price» DATE «Date_Sold»
FOR VALUE RECEIVED, «Buyer_Name» (Borrowers) promises to pay Tomar Holdings LLC, (Lenders) the sum of «Finance_Price» and interest at the yearly rate of 0.0% on the unpaid balance as specified below.
1. Terms. Repayment shall be made in «Term» monthly installments, consisting of «Monthly» per installment on the «On_the» day of each month and continue until the principal is paid in full.
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 directly through the billing method of Lender’s choice, or at such other place as Lender may designate in writing.
2. 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 supersede the rate set forth in Paragraph 1, above, even if the default is subsequently cured.
3. Prepayment. Borrower may prepay this note, in whole or in part.
4. Late Charge. If a payment is fifteen (15) or more calendar days late, Borrower will be charged five percent (5%) of the regularly scheduled payment, in addition to all other sums owed hereunder.
5. Default. Each of the following shall constitute an event of default under this Note:
a. Borrower fails to make any payment when due;
b. 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;
c. Borrower defaults under any loan in favor of any other creditor, if such default may materially affect the Real Property securing this Note; and
d. Any statement made or furnished to Lender by Borrower to Lender in connection with this loan was false at the time 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 in the case of the failure to perform any covenant contained in the Land Contract securing this Note, or if the maker becomes insolvent or makes a general assignment for the benefit of creditors, then the unpaid principal balance and accrued interest shall, at the option of the holder or holders of this Note, immediately become due and payable although the time of maturity as expressed in this Note may not have arrived.
The Borrower promises and agrees that in the event of any sale, transfer, alienation, or other disposition of the Stock which is the subject of the Land Contract which secures this Note, or of any part thereof or of any interest therein, whether voluntary or involuntary, the entire unpaid principal balance and accrued interest shall, at the option of the holder or holders of this Note, immediately become due and payable although the time of maturity as expressed in this Note may not have arrived.
In the event of a default under the terms of this Note or under the terms of the Land Contract securing this Note, the Borrower agrees to pay all costs, including reasonable attorneys’ fees, incurred in the collection of any unpaid amounts. Jurisdiction and venue of any claim, action or proceeding to enforce the parties rights under this Note shall be in the state and federal courts located in Los Angeles County, California.
The Borrower waives presentment for payment, demand, notice, protest, notice of protest, diligence, and non-payment of this Note, and all defenses on the ground of any extension of time for payment that may be given by Lender to Borrower.
BORROWERS:
________________________________________ ________________________
«Buyer_Name» Date
SSN/Tax ID# (IRS Requirement) ________________________
________________________________________ ________________________
Date
SSN/Tax ID# (IRS Requirement) ________________________
