FUNDAY

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
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CONTRACT FOR DEED
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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.
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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:
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____[[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?]]
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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;
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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
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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.
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____[[See note under #15 re existing conditions of the property.]]
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This contract for deed has been prepared without examination of title.
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____[[When was it last examined and by whom?]]
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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.
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____[[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%).]]
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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.
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3. The Buyer may prepay the balance owed to the Seller under this Contract at any time, without penalty.
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4. The risk of loss from destruction of the premises shall pass to the Buyer upon the execution of this Contract.
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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.
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____[[improvements placed on the premises -- Change to: improvements to fixed assets on the premises. {the structure, fixtures, plumbing, boiler, central air, wiring....}]]
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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.
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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.
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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.
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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.
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____[[I'd like the same to apply to Seller.]]
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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.
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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.
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____[[I'd like the contract to include what are the existing easements, restrictions and reservations of record, if any.]]
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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.
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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.
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Buyer agrees to execute a Quit Claim Deed conveying said real estate to Seller, which deed shall be deposited with the escrow agent.
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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.
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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.
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____[[What does that mean: "such as may be it be willful?"]]
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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.
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____[[See note under #9. I'd like there to be no encumbrances on the property that may interfere with my use of it.]]
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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.
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____[[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.]]
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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.
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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.
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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.
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[[The last two clauses seem redundant and potentially problematic, i.e. after "or upon...". They seem well enough covered in #7.]]
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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.
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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.
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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.