If you`re looking to enter into a private mortgage contract, it`s important that you have a clear and concise document that outlines the terms and conditions of the agreement. Having a written contract ensures that both parties understand their obligations and protects both parties in the event of a dispute.
To help get you started, we`ve put together a sample private mortgage contract that can be used as a template for your own agreement. Keep in mind that this is just an example and should be customized to fit your specific situation.
Private Mortgage Contract Sample
This Private Mortgage Contract (“Agreement”) is entered into on [date] by and between [Lender`s Name], a [state] corporation with a mailing address of [address] (“Lender”), and [Borrower`s Name], a [state] resident with a mailing address of [address] (“Borrower”).
Background
Borrower wishes to borrow money from Lender for the purpose of [purpose of loan]. Lender is willing to loan the money to Borrower subject to the terms and conditions of this Agreement.
Loan Terms
1. Loan Amount. The loan amount shall be [amount of loan dollars] (“Loan Amount”).
2. Interest Rate. The interest rate on the loan shall be [interest rate]% per annum.
3. Payment Terms. The loan shall be repaid in [number] installments of [monthly/weekly/bi-weekly] payments of [payment amount] each, with the first payment due on [first payment date].
4. Late Payment. If any payment is more than [number] days late, Borrower shall pay a late fee of [late fee amount].
5. Prepayment. Borrower may prepay the loan in full or in part at any time without penalty.
6. Default. If Borrower fails to make any payment when due, or otherwise breaches this Agreement, Lender shall have the right to declare the entire amount of the loan immediately due and payable.
7. Security. The loan shall be secured by [description of collateral], and Borrower shall execute and deliver to Lender a security agreement and UCC-1 financing statement, as applicable.
8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of [state].
9. Notices. Any notices required or permitted under this Agreement shall be in writing and delivered personally or by certified mail, return receipt requested.
10. Entire Agreement. This Agreement contains the entire agreement between the parties and supersedes all prior agreements and understandings between the parties.
11. Amendments. This Agreement may not be amended or modified except in writing signed by both parties.
12. Assignment. This Agreement may not be assigned by Borrower without the prior written consent of Lender.
13. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[Lender`s Name]
__________________________
By: [Lender`s Signature]
Name: [Lender`s Name]
Title: [Lender`s Title]
[Borrower`s Name]
__________________________
By: [Borrower`s Signature]
Name: [Borrower`s Name]
Title: [Borrower`s Title]
Conclusion
It`s important to note that a private mortgage contract should be reviewed by a legal professional to ensure that it complies with all applicable laws and regulations. Additionally, this sample contract is intended for informational purposes only and should not be construed as legal advice. When in doubt, always consult with a licensed attorney.