BOND FOR DEED Southern Title, Inc. Harvey, LA 70058 UNITED STATES OF AMERICA STATE OF LOUISIANA PARISH OF JEFFERSON BE IT KNOWN, that on, before me,, a Notary Public, duly commissioned and qualified, in and for the Parish and State aforesaid and in the presence of the witnesses hereinafter named and undersigned. PERSONALLY CAME AND APPEARED: Mailing address: (hereinafter called "Seller") AND (hereinafter called "Purchaser") Collectively Seller and Purchaser are hereinafter referred to as "Appearers" Appearers declare that this Contract is a "Bond for Deed" with each other to the effect that Seller will sell and Purchaser will purchase the immovable property as hereinafter described with any and all improvements situated thereon on the terms, conditions and stipulations set forth herein. IT IS CLEARLY UNDERSTOOD AND AGREED THAT THIS DOCUMENT IS NOT A SALE, TRANSFER OR CONVEYANCE BUT ONLY A WRITTEN AGREEMENT TO SELL, TRANSFER, AND CONVEY THE HEREIN DESCRIBED PROPERTY IN THE FUTURE; PROVIDED ALL OF THE TERMS, CONDITIONS, PAYMENTS AND OBLIGATIONS SET FORTH HEREIN ARE FULLY, COMPLETELY AND TIMELY MET BY PURCHASERS. TERMS OF SALE: Appearers further declare that the said sale is to be executed by Seller in favor of Purchaser in the standard form of a Louisiana cash sale with full and general warranty of title. The cost of all necessary or required certificates, vendor's closing fee or settlement charges, mortgage cancellation charges and other charges usually and customarily paid by sellers shall be paid by Seller. Notarial fees and other charges usually and customarily paid by purchaser shall be paid by Purchaser. PROPERTY: lf, and only if, Purchaser makes all payments prescribed herein and promptly pays all taxes, assessments and insurance as set forth herein, and faithfully performs all of the other obligations undertaken herein, Seller will at that time execute a warranty deed, selling and conveying unto Purchaser the following described property, to wit: The said property is subject to any and all restrictions, conditions and servitudes which may appear in the chain of title. PUBLIC RECORDS: This Bond for Deed will be recorded in both the Mortgage and the Conveyance records of the Parish where the property is located. PURCHASE PRICE: The total purchase price for the property and any improvements thereon shall be the sum of ($ ) DOLLARS. Page 1 of 6
Appearers declared that contemporaneously with the execution of this instrument, Purchaser has paid to Seller the sum of ($ ) DOLLARS, cash in hand paid, receipt thereof is hereby acknowledged, and Purchaser does hereby bind and obligate Purchaser and Purchaser's heirs, successors and assigns, to pay unto Seller the additional sum of ($ ) with interest at the rate of % per annum on the. unpaid principal balance, payable as follows: PURCHASER ALSO AGREES TO PAY the required escrow payment, (presently $ per month as required by the First Mortgagee) PLUS any state, local or other assessment and the Escrow Agent's servicing fees. SELLER further warrants SELLER will pay any and all payments due, shortages and/or accumulated late charges incurred during SELLERS herein term of ownership. PURCHASER further warrants PURCHASER will pay any and all payments due, shortages and/or accumulated late charges incurred during PURCHASERS herein term of ownership. PAYMENTS: Said payments are to be made beginning and on the TWENTIETH day of each succeeding month thereafter until the full principal sum has been paid. PAYMENTS TO ESCROW AGENT: All payments to be made under this Agreement shall be made to Escrow Agent duly appointed by Appearers herein. LATE PAYMENTS: All payments are due Escrow Agent on the twentieth (20th) day of each month, for the following month, and are considered delinquent if not received by the twentieth (20th). After the twentieth (20th) a 10% late fee will be assessed and retained by escrow agent, in accordance with the Escrow Agent Service Agreement. ESCROW AGENT: Sole responsibility is to accept payment from Purchaser and from the amounts collected to make the payments as specified below in order to amortize the mortgage(s) on the property herein described in accordance with the terms of said mortgage(s). Balance of payments, if any, will be paid to Seller. It is understood by all parties that Escrow Agent shall have no responsibility to make any payment whatsoever in excess of the amounts collected from Purchaser. In the event that Escrow Agent makes any payment in good faith relying upon funds received from any party and should said funds be uncollected, then each party benefiting from the payment made by the Escrow Agent is responsible in solido to reimburse Escrow Agent. In the event monthly payments are not received from Purchaser, Escrow Agent's sole responsibility will be to notify Seller of the non-receipt of payment. Said notice shall be mailed to Seller at the address stated hereinabove. WARRANTY : Seller further declares and warrants that the property is not subject to any undisclosed liens or encumbrances whatsoever and has not been alienated since its acquisition of the same and that Seller will not, prior to the time that title is to be transferred to the said Purchaser, execute or permit any mortgages, liens or encumbrances to be placed on the said property and will at the time that the title is transferred, clear any inscriptions appearing on the Mortgage and Conveyance Certificates. Further, the parties acknowledge that this contract is binding and heritable upon the heirs and assigns of all parties. In the event that the Purchaser must take legal action to cure any title defect, cancel any lien or encumbrance or otherwise incur legal expenses to ensure transfer of the property (e.g. open succession in the event of Seller's death) those expenses, including attorney s fees, will be paid by Seller. TRANSFER OF ESCROW: It is understood that existing Mortgagee (if any) requires monthly escrow payments and such funds standing in escrow upon the completion of this contract shall be transferred to Purchaser. In the event purchaser does not fulfill contract and property is returned to seller, purchaser, relinquishes any and all claims for money held in Escrow. TAX DEDUCTIONS: Any ad valorem or real estate taxes and the interest paid by Purchaser shall be fully tax deductible on Purchaser's income tax returns to the fullest extent allowed now or hereafter by the Internal Revenue Service and/or the taxing authority of the state in which Purchaser files his/her state income tax return. WAIVER: Purchaser expressly consents to a waiver of the requirement of R.S. 9:2942 relative to the obtaining of a written guarantee from the mortgage holders and the recordation thereof and the requirement of R.S. 9:2943 that a Louisiana bank be designated as Escrow Agent. Seller and Purchaser expressly waive any right that they may have to claim the invalidity of this Bond for Deed Contract because of noncompliance with the said statutes and all parties agree not to initiate or suggest that any action be taken against Seller under R.S. 9:2947. Purchaser further understands that the said statutes are for Purchaser's protection and Purchaser affirms knowledge of the Page 2 of 6
outstanding mortgage indebtedness all as set forth herein. REPAIRS AND OCCUPANCY: Purchaser is hereby granted the immediate right of exclusive occupancy of the Property upon execution of this Contract and agrees to keep the Property in good repair, to repair and maintain the improvements and assume all risk of loss or destruction of the improvements. Purchaser agrees not to destroy, damage or substantially alter the Property. Any and all additions, alterations or improvements to the herein described property made by the Purchaser must remain the property of the Seller in the event of default by Purchaser herein. Purchaser hereby expressly waives any and all right to compensation thereof. TERMITE CONTRACT: Purchaser agrees to keep the subject property covered under a termite contract with a licensed and bonded pest control contractor. PROPERTY CONDITION; WAIVER OF WARRANTI ES: EXCEPT AS TO TITLE TO REAL ESTATE Appearers agree that the Property and all plumbing, electrical systems, mechanical equipment, heating and air conditioning systems, built-in appliances and all other items located on or in the Property will be conveyed by Seller and accepted by purchaser "AS IS, WHERE IS," without any warranty whatsoever, EXCEPT AS TO TITLE, as to the operation and suitability of the Property for the use intended by Purchaser, and without regard to the presence of apparent or hidden defects and with Purchaser's full and complete waiver of any and all rights for the return of all or any part of the purchase price by reason of any such defects. Purchaser acknowledges and declares that neither Seller nor any party whomsoever, acting or purporting to act in any capacity whatsoever on behalf of Seller, has made any direct, indirect, explicit or implicit statement, representation or declaration, whether by written or oral statement or otherwise, and upon which Purchaser has relied, concerning the existence or non-existence of any quality, characteristic or condition of the Property. Purchaser has had full, complete and unlimited access to the Property for all and inspections which Purchaser, in his sole discretion, deems sufficiently diligent for the protection of his interest. Purchaser expressly waives the warranty against eviction, warranty of fitness and warranty against redhibitory vices and defects, whether apparent or latent, imposed by C.C. arts. 2476 and 2501, any other applicable state or federal law, and the jurisprudence thereunder. Purchaser also waives any rights he may have in redhibition or to a reduction in purchase price pursuant to C.C. art. 2520 through 2548, inclusive, in connection with the Property. By his/her signature, Purchaser expressly acknowledges all such waivers and his exercise of Purchaser's right to waive warranty pursuant to C.C. art. 2603. Purchaser further acknowledges that this waiver of warranty will be contained in any future transfer of title from Seller to Purchaser. TAXES: All taxes assessed against the herein conveyed property have been paid, as per vendor, herein. Taxes for the current year have been prorated through the date hereof. All property taxes, any state, local or other assessments, from the date of this Act and thereafter shall be the responsibility of Purchaser, and will be promptly paid by Purchaser when due, prior to the time the same become delinquent. CONDOMINIUM FEES: If property herein is the subject of a condominium regime Purchaser herein warrants all condominium fees will be paid to condominium Association. Seller herein warrants all condominium fees assessed prior to the execution of this Bond for Deed Contract have been paid. INSURANCE: Purchaser shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire and hazards included within the term "extended coverage" (minimum $ personal liability), flood and any other hazards in the minimum amount required by mortgagee(s). The insurance carrier providing the insurance shall be chosen by Purchaser subject to the approval of mortgagee(s). All necessary insurance policies and renewals to protect all parties shall be in the names of Seller and Purchaser and shall include a standard mortgagee or loss payable clause in favor of mortgagee(s); Certificates of such insurance shall be delivered to Seller at the time of execution of this Contract. It is agreed and understood that all insurance proceeds which might be paid under said insurance policies will be distributed between Seller and Purchaser as their respective interest may exist at the time of the payment of such insurance proceeds. If Seller's existing insurance is continued in force, Purchaser agrees to review said insurance to determine the adequacy and suitability of coverage. Unless Appearers otherwise agree in writing ALL proceeds shall go toward the repair of the property. Any application of insurance proceeds to the principal balance of any mortgage(s) shall not extend or postpone the due date of the monthly payments required herein or change the amount of said payment. However, any such application of insurance proceeds shall inure to the benefit of Purchaser by being credited first to any installments then due; second the balance, if any being credited to the outstanding principal balance of the purchase price; and third the balance, if any, being paid to the Purchaser. DEFAULT: Appearers further declare that the payment of each installment, plus the payment of all taxes and any state, local or other assessments and insurance premiums is of the essence of this Page 3 of 6
Contract and that if any of said installments, taxes, assessments, or insurance premiums are not paid when due or if Purchaser shall in any other manner violate the terms and conditions hereof, then in any of such events, Purchaser shall be in default and Seller shall have the right, AFTER 45 DAY REQUIRED NOTICE, at Sellers option: (a) To seek specific performance of this Contract and to accelerate all installments due for the unexpired remaining term of this Contract and declare said amount immediately due and payable, together with reasonable attorney's fees in the event an attorney at law is employed to protect any interest or enforce any rights of Seller under this Contract. Upon payment of all such amounts, Seller will immediately convey title to the Property to Purchaser. Purchaser expressly waives all demands and notices of demand; or (b) To have this Contract and the Special Mortgage granted hereinabove canceled in accordance with the provisions of R.S. 9:2945 and C.C. Art. 2017, without the necessity of a judicial dissolution. It is expressly agreed that either Seller or the Escrow Agent named herein, may serve the required forty-five (45) day notice. Purchaser expressly waives any additional time to perform which may be allowed by C.C. Art. 2013. In such event all of Purchaser's rights under this Agreement shall be forfeited as hereinafter provided. {c) Any Bond for Deed payments held in Escrow, Bond for Deed escrow for taxes and insurance, or Mortgage Company escrow balance remaining in case of Default shall first be used to pay any and all fees (Collection Feeds, Late Charges, Miscellaneous Fees etc.) due. Any balance remaining shall then become the property of the seller. SELLER'S DEFAULT: Appearers further declare that if Seller shall in any manner violate the covenants hereunder, then in any of such events, Seller shall be in default and Purchaser shall have the right, at Purchaser's option: (a) (b) (c) To seek specific performance of this Contract, together with reasonable attorney's fees; OR To seek damages together with reasonable attorney's fees, in the event an attorney is employed to protect any interest or enforce any rights of Purchaser under this Contract; OR, Any remedies available under Louisiana law for breach of contract. BINDING ARBITRATION: All controversies between Owner, Purchaser and/or Administrator, or rights of the parties hereto, shall be submitted to binding arbitration. All parties hereby waive their rights to a jury trial or other judicial determination. Tort damages, reimbursement rights, deposits, rights to occupancy, attorney's fees; costs or expenses, as a result of this Agreement, may only be asserted in binding arbitration. The parties further waive their right to any claims or counter claims except those asserted within said arbitration proceedings. Purchaser's request for arbitration concerning cancellation of this Agreement or an arbitration request concerning any other matter shall be sent within ten (10) days of the mailing of the Notice of Default or within six (6) months of the occurrence giving rise to the dispute, whichever occurs sooner. Owner has no obligation to initiate arbitration to confirm cancellation upon default. Only written requests for arbitration, sent certified mail return receipt requested to the undersigned Notary Public and accompanied by a certified check in the amount of Three Hundred Dollars (partial payment of the arbitration fee), shall be valid. The arbitrator shall be selected by the said Notary. The fees of the arbitrator shall be paid by the defaulting party. This arbitration clause shall survive the termination or breach of this Agreement. If any provision of this arbitration clause is held invalid, that invalidity shall not affect other provisions of this arbitration provision. FORFEITURE: In the event of such default and cancellation under R.S. 9:2945, title to the Property shall be free and clear from any and all claims by Purchaser and Seller shall be entitled to retain all payments heretofore made by Purchaser and all improvements placed upon the Property without reimbursing Purchaser therefor. It is expressly agreed and stipulated that the initial payment, plus the total installments paid by Purchaser, constitute the stipulated compensatory amount and/or liquidated damages which Seller is entitled to retain to fairly compensate Seller for: (1) the fair and reasonable rental value of the Property which is owed to Seller for Purchaser's use of the Property during the term of this Contract; (2) reasonable compensation owed to Seller for Seller's removal of the Property from the market and the resultant loss of all opportunities to sell the Property to a third party during the term of this Contract; and (3) reimbursement of real estate broker's commission, closing fees and costs, transaction fees and/or costs, interest paid on the underlying mortgage(s) and Federal and State Income and/or capital gains taxes paid or incurred by Seller as a result of this Contract. Page 4 of 6
Further, Purchaser covenants and agrees that he and any and all persons holding possession of the Property shall immediately surrender possession of the Property and the improvements thereon to Seller upon cancellation of this Contract. FORBEARANCE BY SELLER NOT A WAIVER: Seller's failure to strictly and promptly enforce Seller's rights under this Contract shall not operate as a waiver of Seller's rights and Seller hereby expressly reserves the right to always enforce prompt payment of all installments during the term of this Contract, or to seek cancellation of this Contract and forfeiture of all payments made by Purchaser to the date of such cancellation, regardless of any indulgences or extensions previously granted. INSPECTION: Seller or his agent may make reasonable entries upon and inspections of the Property. Seller shall give Purchaser 10 days notice, in writing, prior to any inspection, specifying reasonable cause for the inspection. LEGISLATION AFFECTI NG RIGHTS: If enactment; enforcement of or expiration of applicable laws has the effect of rendering any provision of the Contract unenforceable according to its terms, Seller, at his option may require immediate payment in full of all sums due under this Contract and may invoke any remedies permitted in the event of default by Purchaser as set forth herein. Purchaser and Seller are aware and understand that pursuant to current federal legislation mortgage(s) may contain clauses which lender may consider a due on sale clause. In the event of said enforcement of such clause Purchaser and Seller hereby release and relieve Southern Title, Inc.; their employees, successors and/or assigns from any and all liability, damages, costs, and/or attorney's fees in connection therewith. NOTICES: Any notice to Purchaser provided for in this Contract shall be given by hand delivering it or by mailing it "Certified Mail" through the United States Postal Service. The notice shall be directed to Purchaser's address as designated herein or any other address Purchaser designates by notice to Seller. Any notice to Seller shall be given by hand delivering it or by mailing it by first class mail to Seller's address stated herein or any other address Seller designates by notice to Purchaser. Any notice provided for in this Contract shall be deemed to have been given to Purchaser or Seller when given as provided in this paragraph. ASSIGNMENT: (Must check one) APPLICABLE NOT APPLICABLE Appearers further declare that this Contract and all rights hereunder may be transferred and assigned to a third party without the consent of Seller, but in the event of such assignment or transfer, Purchaser shall nevertheless remain personally liable for all payments and other obligations to Seller as set forth in the Agreement. POWER OF ATTORNEY: Seller further declared that Seller has made and appointed and does by these presents make, name, nominate, ordain, authorize, constitute and appoint and in Seller's place and stead depute SOUTHERN LOAN SERVICING, INC., to be their true and lawful agent and attorney-in-fact, giving, and by these presents granting unto the said agent, full power and authority for Seller and in Seller's name and behalf to sell and deliver the hereinabove described real estate and all of Seller's right, title and interest therein, with warranty of title and with subrogation of all actions of warranty, unto any person, firm or corporation or association, in accordance with the terms of this Contract and to receive the balance, if any, due at such time. Seller further declared that Seller does hereby authorize the said agent and attorney-in-fact, in agent's sole and uncontrolled discretion, to sign all papers, documents, negotiable instruments and acts necessary to accomplish the above purpose and to do any and all things which the said agent deems necessary or proper in connection therewith. Agent is fully empowered to satisfy any obligation of Seller as set forth herein, including but not limited to the following: purchase of insurance, redemption for non-payment of property taxes, negotiation of check(s) payable to seller(s) with regard to said Bond for Deed contract; negotiation of escrow and/or insurance refunds, etc; however, agent is not obligated to perform any act, but may do so at his/her sole discretion. POWER OF ATTORNEY : Purchaser further declared that Purchaser has made and appointed and does by these presents make, name, nominate, ordain, authorize, constitute and appoint and in Purchaser's place and stead depute SOUTHERN LOAN SERVICING, INC., to be their true and lawful agent and attorney-in-fact, giving, and by these presents granting unto the said agent, full power and authority for Purchaser and in Purchaser's name and behalf to sell and deliver the hereinabove described real estate and all of Purchaser's right, title and interest therein, with warranty of title and with subrogation of all actions of warranty, unto any person, firm or corporation or association, in accordance with the terms of this Contract and to receive the balance, if any, due at such time. Purchaser further declared that Purchaser does hereby authorize the said agent and attorney-in-fact, in agent's sole and uncontrolled discretion, to sign all papers, documents, negotiable instruments and Page 5 of 6
acts necessary to accomplish the above purpose and to do any and all things which the said agent deems necessary or proper in connection therewith. Agent is fully empowered to satisfy any obligation of Purchaser as set forth herein, including but not limited to the following: purchase of insurance, redemption for non-payment of property taxes, negotiation of check(s) with regard to said Bond for Deed contract etc; however, agent is not obligated to perform any act, but may do so at his/her sole discretion. COMPLIANCE: Each party agrees to comply with the reasonable requirements of the mortgagee(s) described herein, and the taxing and policing authorities having dominion over the Property. Purchaser agrees not to violate the terms of any mortgage(s) encumbering the property. Seller agrees to take no act which renders performance impossible by the Purchaser and to take all reasonable measures to permit Purchaser to satisfy Purchaser's obligations. THUS DONE AND SIGNED, in my office on the day, month and year first aforesaid, in the presence of the undersigned competent witnesses, who herewith sign their names with the sake parties, and me, Notary, after the reading of the whole. WITNESSES: Notary Public Page 6 of 6