Payments Due on Land Contract under Which Seller Claims

Payments Due on Land Contract under Which Seller Claims

In cases where the title of the seller is encumbered by mortgage or it is evidenced by a land contract, then in such cases, the seller will meet both the payment of the principal amount as well as the interest amount as it matures and the evidences of the payments made by the seller has to be shown to the purchaser when he or she demands to see it. Incase the seller defaults on the payments, then in such cases, the purchaser may make these payments on the seller’s behalf and this goes towards the crediting of the matured sums or the maturing of the interest agreement at the rate of interest which is stipulated.

There are cases where the proceedings commence the recovery of the possessions or when there are causes that the payments of the contract or mortgage are to be enforced. These situations happen when the seller defaults on payment of the installments that are due towards the principal and the interest amounts. In these situations, the purchaser pays the interest as well as the principal amount of the mortgage and the sum that he owes the seller is reduced by the same amount. This is what the contract empowers the purchaser to do and the conveyance is made in the form which is provided which has a covenant where they pay the same. This is what the payment due on land contract under which the seller claims document is all about and the situations where it is enforced.

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Payments due on land contract under which seller claims.

If the title of seller is evidenced by land contract or in cumbered by mortgage, seller shall meet the payments of principal and interest as they mature and produce evidence of payments to purchaser on demand. If seller defaults purchaser may make payments which shall be credited on the sums matured or first maturing on this agreement with interest at _____% per annum. If proceedings are commenced to recover possession or enforce the payment of a contract or mortgage because of seller’s default purchaser may at any time while such proceedings are pending incumber the land by mortgage and with the proceeds pay and discharge such mortgage or purchase money lien. Any mortgage so given shall be a first lien upon the land superior to the rights of seller and purchaser shall pay the principal and interest on such mortgage so given as they mature, which payments shall be credited on the sums matured or first maturing on this agreement. When the sum owing on this agreement is reduced to the amount owing upon such contract or mortgage or owing to any mortgage executed under either of the powers in this contract, a conveyance shall be made in the form above provided with a covenant by grantee to assume and pay the same.