Long Form Security Land Contract - Part 1 WHEN RECORDED MAIL TO
LONG FORM SECURITY (INSTALLMENT) LAND CONTRACT WITH POWER OF SALE AND REQUEST FOR NOTICE OF DEFAULT
(PRIOR LOAN PAYMENTS NOT INCLUDED)
THIS AGREEMENT, made and entered into this day of between
herein called VENDOR, and
herein called VENDEE, and
__________________________________________________________________, herein called TRUSTEE.
The signature of Vendor and Vendee of this contract shall also constitute their signature of the
REQUEST FOR NOTICE OF DEFAULT
In accordance with California Civil Code section 2924(b), request is hereby made by the undersigned Vendor and Vendee that: (1) a copy of any Notice of Default and a copy of any Notice of Sale under Deed of Trust recorded ________________________________, in Book ________ Page __________________, Document No. ______________________ Official Records of ________________________ County, California, as affecting the herein described property, executed by _____________________________
___________________________________________________________________________________
as Trustor, in which ________________________________________________________________________
is named as Beneficiary, and _______________________________________________________as Trustee, be mailed to Vendor and Vendee at address immediately below; and (2) a copy of any Notice of Default and a copy of any Notice of Sale under Deed of Trust recorded _________________________ in Book ________, Page _________, Document No. __________________, Official Records of__________________County, California, as affecting the herein described property, executed by _______________________________
as Trustor, in which ____________________________________________________________ is named as Beneficiary, and ____________________________________________________________________Trustee, be mailed to Vendor and Vendee at address below.
Vendee Vendor
Address Address
To secure the obligations of Vendee herein, Vendor and Vendee hereby grant, transfer and assign to Trustee, in trust, with power of sale, their right, title and interest in the real property situated in the County of ___________________________________________________, State of California, and
described as follows:
Reserving unto Vendor the power to convey title to the Vendee or the Vendee's successors or assigns upon the performance of Vendee's obligation under this agreement. Any recorded deed executed and acknowledged by the Vendor or his or her successors, to the Vendee or his or her successors of the real property described herein, or any portion thereof, shall be deemed executed pursuant to this power, which deed shall be free and clear of, and terminate, the right, title interest and the powers of the Trustee.
Reserving unto Vendee the right of possession subject, however, to the power of sale herein granted to the Trustee.
WITNESSETH:
WHEREAS, Vendor has agreed to sell, and Vendee has agreed to buy said real property upon the terms and conditions set forth herein, and
WHEREAS, Vendee agrees, that if Vendor elects to enforce the Vendor's security interest in the real property by exercising the power of sale, as herein provided, such sale shall discharge and terminate any and all rights of the Vendee arising out of this agreement, whether in the form of restitution, redemption or otherwise.
NOW, THEREFORE, VENDOR AND VENDEE DO HEREBY AGREE AS FOLLOWS:
Vendor agrees to sell and Vendee agrees to buy that real property described above for the total purchase price of $_______________________________, payable as follows:
1. Payment of purchase price (Loan payment extra).
A. Vendee shall pay to Vendor forthwith the sum of $ __________________________ as a down payment.
B. Vendee promises to pay according to the terms thereof, the installments and such impound account requirements of the holders of the note(s) secured by the deed(s) of trust referred to in the Request for Notice set forth on page 1 of this Contract, and Vendor represents that the aggregate principal balance of such note(s) does not exceed $ ______________________________.
C. Vendee promises to pay to Vendor, or order, at_______________________________ the sum of
$ ___________________________ with interest thereon at the rate of _______% per annum, commencing ________________________________, principal and interest payable
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
This agreement with require _____________ years and __________ months to complete payment in accordance with its terms.
2. TITLE INSURANCE
Upon recordation of this security land contract, STEWART TITLE OF CALIFORNIA, INC., shall issue a joint protection policy of title insurance (lender's - owner's) insuring the Vendor's (lendor's) and Vendee's (owner's) interest herein.
3. POSSESSION
(a) Vendor grants to Vendee the possession of said real property, for the term of this agreement, or until the earlier termination of this agreement.
(b) Vendor hereby reserves the right, power and authority to collect the rents, issues and profits of said real property. However, Vendor assigns to Vendee the right, prior to any default by Vendee in payment of any indebtedness secured hereby, or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Vendor may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his or her own name, sue for or otherwise collect such rents, issues and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Vendor may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof, as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
4. RISK OF LOSS
(a) Vendee assumes all hazards of damage to or destruction of any improvements now or hereafter placed upon said real property and of taking of such real property or any part thereof for public use, and agrees that no such damage, destruction or taking shall constitute a failure of consideration under this contract.
(b) Any award of damages from any taking for public use, or from any damage to said real properly or any part thereof is assigned to Vendor with the right to apply or release such monies in the same manner and effect as provided for disposition of proceeds of fire insurance.
(c) Vendee does hereby indemnify Vendor and Trustee against any and all claims by third parties for personal injury or property damage, and agrees to provide public liability insurance on the premises in an amount not less than $ _______________________ naming Vendor as an additional insured.
5. TO PROTECT VENDOR'S SECURITY INTEREST, VENDEE AGREES:
(a) To keep said property in good condition and repair, preserve thereon the buildings, complete construction begun, restore damage or destruction, and pay the cost thereof; to commit or permit no waste, no violation of laws or covenants or conditions relating to use, alterations or improvements; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which the character and use of said property and the estate or interest in said property secured by this agreement may require to preserve this security.
(b) To provide, maintain and deliver to Vendor fire insurance satisfactory to and with loss payable to Vendor. The amount collected under any fire or other insurance policy may be applied by Vendor upon any indebtedness secured hereby and in such order as Vendor may determine, or Vendor may release all or any part thereof to Vendee. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.
(c) To appear in and defend any action or proceeding purporting to affect the security hereof, or the rights or powers of Vendor or Trustee, and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceedings in which Vendor or Trustee may appear.
(d) To pay, at least ten days before delinquent, all taxes and assessments affecting said property, including assessments on appurtenant water stock when due, as well as all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto, except as agreed to be paid by Vendor, all costs, fees and expenses of this agreement.
Should Vendee fail to make any payment, or to do any act as herein provided, then Vendor, but without obligation to do so and without notice to or demand upon Vendee and without releasing Vendee from any obligation hereof, may make or do the same in such manner and to such extent as Vendor may deem necessary to protect the security hereof. Vendor is authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Vendor or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees.
(e) To pay immediately and without demand all sums so expended by Vendor, with interest from date of expenditure, at ten percent per annum.
6. VENDOR AGREES:
(a) Upon the performance in full by the Vendee, to execute and have acknowledged a Grant Deed, in recordable form, of the real property described in this agreement, vesting the fee title in Vendee, or the Vendee's successors or assigns, subject only to the liens to be paid by the Vendee and such other encumbrances accepted, made by or suffered by the Vendee, and to deliver such deed as directed by the Vendee, or his or her successors or assigns.
(b)To pay Vendee any transfer tax required by law.
(c) During the existence of this contract, and upon the written demand of the Vendee or his or her authorized agent made at any time before or within two months after the recording of a notice of default under this contract, or thirty days prior to the entry of a judgment for the enforcement of this contract, and upon the payment not to exceed sixty dollars ($60.00) therefor, to cause to have prepared and delivered to the person demanding it within twenty-one (21) days of the receipt of the demand, a written statement materially setting forth the information required to be supplied by a mortgage or beneficiary by California Civil Code section 2943.
(d) To keep current all payments due the underlying Deed(s) of Trust.
7. DEFAULT AND ACCELERATION
Time is of the essence in the payments agreed to be paid Vendor, and the performance of the agreements made for the protection of the Vendor's security, and should Vendee fail to make such payment or tender such performance when due, such failure shall constitute a default. Upon the occurrence of any such default, Vendor may declare all sums secured unto Vendor by this agreement immediately due and payable.
8. ELECTION TO SELL
Upon the election by Vendor to proceed by Trustee's Sale, Vendor may elect to declare all sums immediately due and payable by delivering to the Trustee a written declaration of default and demand for sale; Vendor's copy of this agreement; and all documents evidencing expenditures by Vendor, secured by this agreement.
9. NOTICE OF DEFAULT
Vendor shall further deliver to Trustee a written Notice of Default and Election to Sell, which notice shall identify the contract by stating the names of the Vendor and Vendee, and the date of recording, and the recording reference and shall contain a description of the real property. Such notice shall also contain a statement that a breach of the obligations secured by such agreement has occurred, and shall set forth the nature of such breach and the election by the Vendor to sell or cause such property to be sold to satisfy the obligations secured by this agreement. If the default is curable under the provisions for reinstatement, set forth in this agreement, such Notice of Default shall further contain a statement substantially in the form set forth in California Civil Code section 2924c(b)(1).
10. POWER OF SALE
The only power the Trustee has under this agreement is to exercise the power of sale in the event of a default by the Vendee. The Trustee shall have no power to convey Vendor's interest to Vendee upon fulfillment of Vendee's obligations hereunder.
11. PROCEDURE FOR SALE
(a)Trustee shall cause to be filed for record in the office of the Recorder of each county wherein the real property, or some part or parcel thereof, is situated an executed copy of the Notice of Default.
(b) Any person desiring a copy of any Notice of Default and of any Notice of Sale under this contract may, at any time subsequent to recordation of this contract and prior to recordation of Notice of Default thereunder, cause to be filed for record in the office of the recorder of any county in which any part or parcel of the real property is situated, a duly acknowledged request for a copy of the Notice of Default and of Sale. This request shall be signed and acknowledged by the person making the request, specifying the name and address of the person to whom the notice is to be mailed, shall identify the contract by stating the names of the parties thereto, the date of recordation thereof, and the book and page where the contract is recorded or the recorder's number, and shall be in substantially the form set forth in California Civil Code section 2924b(a).
The Vendor, Trustee, or other person authorized to record the Notice of Default shall do each of the following:
(i) Within 10 business days following recordation of the Notice of Default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person including Vendee, whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to each person including Vendee at his or her last known address if different than the address specified in the contract.
(ii) At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale, addressed to each person whose name and address are set forth in a duly recorded request therefor, directed to the address designated in the request and to Vendee at his or her last known address if different than the address specified in the contract.
(iii) As used in paragraphs (i) and (ii) above, the "last known address" of the Vendee means the last business or residence address actually known by the Vendor, Trustee, or other person authorized to record the Notice of Default. The Vendor shall inform the Trustee of the Vendee's last address actually known by the Vendor. However, the Trustee shall incur no liability for failing to send any notice to the last address unless the Trustee has actual knowledge of it.
The Vendor, Trustee, or other person authorized to record the Notice of Default shall also do the following:
(i)Within one month following recordation of the Notice of Default, deposit or cause to be deposited in the United States mail an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice with the recording date shown thereon, addressed to each person set forth in paragraph (ii) below, provided that the estate or interest of any person entitled to receive notice under this subdivision is acquired by an instrument sufficient to impart constructive notice of the estate or interest in the land or portion thereof which is subject to the contract, and provided the instrument is recorded in the office of the county recorder so as to impart that constructive notice prior to the recording date of the Notice of Default and provided the instrument as so recorded sets to forth a mailing address which the county recorder shall use, as instructed within the instrument, for the return of the instrument after recording, and which address shall be the address used for the purposes of mailing notices under this paragraph.
(ii) The persons to whom notice shall be mailed under paragraph (i) above are:
(A)The successor in interest, as of the recording date of the Notice of Default, of the estate or interest or any portion thereof of the Vendee.
(B) The beneficiary or mortgagee of any deed of trust or mortgage recorded subsequent to the contract, or recorded prior to or concurrently with the contract but subject to a recorded agreement or a recorded statement of subordination to the contract.
(C) The assignee of any interest of the beneficiary or mortgagee described in subparagraph (B), as of the recording date of the Notice of Default.
(D) The vendee of any contract of sale, or the lessee of any lease, of the estate or interest being foreclosed which is recorded subsequent to the contract, or recorded prior to or concurrently with the contract but subject to a recorded agreement or statement of subordination to the contract,
(E) The successor in interest to the vendee or lessee described in subparagraph (D), as of the recording date of the Notice of Default.
(F) The Office of the Controller, Sacramento, California, where, as of the recording date of the Notice of Default, a "Notice of Lien for Postponed Property Taxes" has been recorded against the real property to which the Notice of Default applies.
(iii) At least 20 days before the date of sale, deposit or cause to be deposited in the United States mail, an envelope, sent by registered or certified mail with postage prepaid, containing a copy of the notice of the time and place of sale addressed to each person to whom a copy of the Notice of Default is to be mailed as provided in paragraphs (i) and (ii) above, and addressed to the office of any state taxing agency, Sacramento, California, which has recorded a notice of tax lien prior to the recording date of the Notice of Default against the real property to which the Notice of default applies.
(iv) The mailing of notices in the manner set forth in paragraph (i) above shall not impose upon any licensed attorney, agent, or employee of any person entitled to received notices as herein set forth any duty to communicate the notice to the entitled person from the fact that the mailing address used by the county recorder is the address of the attorney, agent, or employee.
(v) Any person required to mail a copy of a Notice of Default or Notice of Sale to the Vendor pursuant to this paragraph (b) by registered or certified mail shall simultaneously cause to be deposited in the United States mail, with postage prepaid and mailed by first-class mail, an envelope containing an additional copy of the required notice addressed to the Vendee at the same address to which the notice is sent by registered or certified mail pursuant to paragraph (b). The person shall execute and retain an affidavit identifying the notice mailed, showing the name and residence or business address of that person, that he or she is over the age of 18 years, the date of deposit in the mail, the name and address of the Vendee to whom sent, and that the envelope was sealed and deposited in the mail with postage fully prepaid. In the absence of fraud, the affidavit required by this subdivision shall establish a conclusive presumption of mailing.
(c)(i) Whenever all or a portion of the principal sum of any obligation secured by this contract has, prior to the maturity date fixed in that obligation, become due or been declared due by reason of default in payment of interest or of any installment of principal, or by reason of failure of Vendee to pay in accordance with the terms of that obligation or of the contract, taxes, assessments, premiums for insurance, or advances made by Vendor in
accordance with the terms of that obligation or of the contract, the Vendee or his or her successor in interest in the mortgaged or trust property or any part thereof, or any beneficiary under a subordinate deed of trust or any other person having a subordinate lien or encumbrance of record thereon, at any time within the period specified in Civil Code section 2924(c)(e), if the power of sale herein is to be exercised, may pay to the Vendor or their successors in interest respectively, the entire amount due, at the time payment is tendered, with respect to (A) all amounts of principal, interest, taxes, assessments, insurance premiums, or advances actually known by the vendor to be, and that are, in default and shown in the Notice of Default, under the terms of the contract and the obligation secured thereby, (B) all amounts in default on recurring obligations not shown in the Notice of Default, and (C) all reasonable costs and expenses, subject to paragraph (e) below, which are actually incurred in enforcing the terms of the obligation or contract, and Trustee's or attorney's fees, subject to paragraph (f) below, other than the portion of principal as would not then be due had no default occurred, and thereby cure the default theretofore existing, and thereupon, all proceedings theretofore had or instituted shall be dismissed or discontinued and the obligation and contract shall be reinstated and shall be and remain in force and effect, the same as if the acceleration had not occurred. For the purposes of this paragraph, the term "recurring obligation" means all amounts of principal and interest on the loan, or rents, subject to the contract in default due after the Notice of Default is recorded; all amounts of principal and interest or rents advanced on senior liens or leaseholds which are advanced after the recordation of the Notice of Default; and payments of taxes, assessments, and hazard insurance advanced after recordation of the Notice of Default. Where the Vendor has made no advances on defaults which would constitute recurring obligations, the Vendor may require
the Vendee to provide reliable written evidence that the amounts have been paid prior to reinstatement.
(ii) It the Vendee or other person authorized to cure the default pursuant to this paragraph (c) does cure the default, the Vendor or the agent for the Vendor shall, within 21 days following the reinstatement, execute and deliver to the Trustee a Notice of Rescission which rescinds the Vendor's declaration of default and demand for sale and advises Trustee of the date of reinstatement. The Trustee shall cause the Notice of Rescission to be recorded within 30 days of receipt of the Notice of Rescission and of all allowable fees and costs.
No charge, except for the recording fee, shall be made against the Vendee for the execution and recordation of the notice which rescinds the declaration of default and demand for sale.
(d)(i) The notice, of any default described in paragraph (c) above recorded pursuant to Civil Code section 2924, and mailed to any person pursuant to Civil Code section 2924b, shall begin with the following statement, printed or typed thereon: " IMPORTANT NOTICE [14-point boldface type if printed or in capital letters if typed]. This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
