With Provision for Mortgage by One of the Parties
What is meant by agreement With Provision for Mortgage by One of the Parties
When there is a agreement between two parties the first party through the warranty deed will provide the real estate to the second party provided there are mortgages. The first mortgage can be for a specified sum and the second mortgage for the second sum. In this the party will not only pay the tax as well as the interest but also have the premises leased to him or her with all the rights of the owner in the lease.
In this the parties will deposit the deed and the mortgages to a firm which is mutually agreeable by both. This is to be done within a stipulated number of days of them signing the agreement. Once it is done, the firm will hold the papers till the date which is mutually agreed by both parties and then they will be granted back to the parties as per the contract.
Both the parties therefore will have possession of the premises from the date which is mentioned and each will have the lease which is given for a year. The first party can inspect the property when giving notice to the second party. When notice is not given the agreement is not to be in effect or to be considered as null and void.
This agreement not only is in effect for the parties but for their heirs as well as representatives and their administrators as well and they need to adhere to the terms and conditions stated in it.
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With provision for mortgage by one of the parties.
This agreement, entered into this _________[date], by and between Jones, and Smith, provides:
Jones, in consideration of the agreements of Smith, set forth below covenants with Smith that Jones will convey by warranty deed to Smith the following described real estate: _________, subject to a first mortgage of $_____ and a second mortgage of $_____ now of record, which Smith is to assume and pay, together with interest and taxes from _________[date]. Smith is to have the lease of the premises for the year _________[year], with all rights of Jones in and to the lease.
Smith, in consideration of these covenants of Jones, agrees to convey by warranty deed to Jones the following described real estate: _________, subject to mortgages of $_____, due _________[date], which mortgages Jones is to assume and pay. Jones is to have the lease to the premises for the year _________[year], together with all rights of Smith in them, and as part of the consideration Jones is to execute and deliver to Smith a mortgage for $_____ on the _________ above described, which mortgage is to be subsequent to the mortgages referred to above, and which mortgage is to be dated _________, and draw interest from _________[date] at the rate of _____% per annum.
The parties to this contract agree to deposit with _________ deeds to the above-described premises and the mortgage above described within _________ days from the date of this agreement, or as soon as the titles to the premises are perfected, should any defect be found in them.
The firm of _________ is to hold all of these papers until _________[date], when same are to be delivered by _________ to the parties entitled to them under this contract.
Both parties are to give possession of these premises _________[date]: provided, as above set forth, that each is to have the lease for the year _________[year].
Smith shall have the right to inspect the above property which Jones agrees to convey, and if Smith shall not give Jones written notice on or before _________[date] that the property is not satisfactory to h?, then all of agreements in this contract are to be of full force and effect. If Smith does give such written notice to Jones on or before _________[date], then this agreement is to be null and void and of no effect.
It is mutually agreed by and between the parties that all agreements contained in this agreement shall extend to and be obligatory upon the heirs, executors, administrators, and assigns of the respective parties.
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