This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Description: The Wisconsin Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage is a legal document that outlines the terms and conditions of a real estate transaction in which the property owner offers financing to the buyer. This type of contract is commonly used when the buyer does not have sufficient funds for an all-cash purchase or is unable to secure traditional bank financing. Key Features: 1. Owner Financing: The contract specifies that the property owner will finance the sale, acting as the lender, rather than a financial institution. This allows buyers who may not qualify for a traditional mortgage to purchase the property. 2. Note and Purchase Money Mortgage: The contract establishes the buyer's obligation to repay the seller through a promissory note, which serves as evidence of the debt. Additionally, a purchase money mortgage is created on the property, securing the seller's interest in the event of default. 3. Terms and Conditions: The contract outlines the specifics of the transaction, including the purchase price, down payment amount, interest rate, repayment schedule, and any applicable late fees or penalties. The terms are mutually agreed upon by both parties. 4. Title and Closing: The contract stipulates that the seller will provide a clear and marketable title to the property. A closing date is also included, during which the property ownership is transferred to the buyer upon fulfillment of contractual obligations. 5. Default and Remedies: In the event of buyer default, the contract outlines the rights of both parties. The seller may have the option to terminate the contract, retain any payments made, and repossess the property. Alternatively, the contract may provide for certain cure periods during which the buyer can rectify the default. Types: While the basic framework of the Wisconsin Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage remains the same, there can be variations based on individual agreements and specific circumstances. Some variations may include: 1. Land Contract: This type of contract is commonly used when the buyer intends to purchase vacant land or undeveloped property. The terms and conditions are adjusted to reflect the unique aspects of land transactions. 2. Lease Option Agreement: In certain cases, the contract may include an option for the buyer to lease the property for a specific period with the option to purchase it at a future date. This arrangement allows the buyer to test the property before committing to the full purchase. 3. Balloon Payment Agreement: This type of contract includes a large final payment (balloon payment) due at the end of a specified period. This arrangement allows for smaller monthly payments throughout the contract term, with a larger final payment to satisfy the remaining balance. Note: It is essential to consult with a qualified real estate attorney or professional to ensure compliance with Wisconsin laws and to customize the contract according to individual circumstances and preferences.Description: The Wisconsin Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage is a legal document that outlines the terms and conditions of a real estate transaction in which the property owner offers financing to the buyer. This type of contract is commonly used when the buyer does not have sufficient funds for an all-cash purchase or is unable to secure traditional bank financing. Key Features: 1. Owner Financing: The contract specifies that the property owner will finance the sale, acting as the lender, rather than a financial institution. This allows buyers who may not qualify for a traditional mortgage to purchase the property. 2. Note and Purchase Money Mortgage: The contract establishes the buyer's obligation to repay the seller through a promissory note, which serves as evidence of the debt. Additionally, a purchase money mortgage is created on the property, securing the seller's interest in the event of default. 3. Terms and Conditions: The contract outlines the specifics of the transaction, including the purchase price, down payment amount, interest rate, repayment schedule, and any applicable late fees or penalties. The terms are mutually agreed upon by both parties. 4. Title and Closing: The contract stipulates that the seller will provide a clear and marketable title to the property. A closing date is also included, during which the property ownership is transferred to the buyer upon fulfillment of contractual obligations. 5. Default and Remedies: In the event of buyer default, the contract outlines the rights of both parties. The seller may have the option to terminate the contract, retain any payments made, and repossess the property. Alternatively, the contract may provide for certain cure periods during which the buyer can rectify the default. Types: While the basic framework of the Wisconsin Contract for the Sale of Residential Property — Owner Financed with Provisions for Note and Purchase Money Mortgage remains the same, there can be variations based on individual agreements and specific circumstances. Some variations may include: 1. Land Contract: This type of contract is commonly used when the buyer intends to purchase vacant land or undeveloped property. The terms and conditions are adjusted to reflect the unique aspects of land transactions. 2. Lease Option Agreement: In certain cases, the contract may include an option for the buyer to lease the property for a specific period with the option to purchase it at a future date. This arrangement allows the buyer to test the property before committing to the full purchase. 3. Balloon Payment Agreement: This type of contract includes a large final payment (balloon payment) due at the end of a specified period. This arrangement allows for smaller monthly payments throughout the contract term, with a larger final payment to satisfy the remaining balance. Note: It is essential to consult with a qualified real estate attorney or professional to ensure compliance with Wisconsin laws and to customize the contract according to individual circumstances and preferences.
