A purchase money mortgage contract is a legal document which is drafted when an individual referred to as the seller of a house issues a mortgage to the individual referred to as the buyer as a part of the purchase transaction when the buyer is not able to take a mortgage loan from a mortgage company. The details mentioned in the contract include the total mortgage amount as well as the monthly installments that the buy has to pay to the seller.
Sample Purchase Money Mortgage Contract
This purchase money mortgage contract is a legal document drafted as per the Mortgage Laws of the State of Colorado on this date of 12th December 2011 and entered into between John Moe referred to as the buyer and Larry King referred to as the seller as the seller issues a mortgage amount of $50000 to the buyer for buying the house located at:
12 Red Rainbow Corner,
Arcane, Colorado 4567.
There are few terms and conditions that both the parties need to agree to:
- The buyer has to pay a monthly interest of ten percent to the seller. The interest needs to be paid by the first week of every month.
- The seller assures that he has cleared all outstanding property taxes and other legal taxes.
- Failure in payment of the monthly installment consecutively for three months by the buyer will lead to repossession of the house by the seller.
In agreement to the above terms and conditions:
Signature of purchaser: Signature of seller:
John Moe Larry King