Land Contracts Partial Payment Sales by W.B. Stringfellow

8/14/2019 Land Contracts Partial Payment Sales by W.B. Stringfellow

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Tke Red,ItuBkrc Book of Cdilornin

W. B. STETNGFELLoWJunior lice Pfd. @d Reat ,tttate OiictPaciflc-Southbett Trtsl un.] gattugs Bank


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W Th, R'altr t EtueEu,lt r i r t tLirr.Lia 297L; tn( t \ ( n t f i tCtS

PT\IITIAL PAYIIIENT SALESll , \\r. R. STRiNGFELLo*.

ALES o ' J I k i r d . ^ i p r u t - r t , n . p r n i : , t r j \ ' m c n ip t a n . h a \ Ao F V ^ o u p 4 tu r e n . r k i r h t \ u l I n " \ i , h i , r h - l a s r t $o o r t ] " r L Ldecades.- The Dlan1v:rs irst ndoDted n otder to cre.rtca rruch lal'gcr nlnlketfor ccr ' lain rpes of houschotaLommodit ics, he don,nright pulchaseof l vhich \ras_genelnl lr cl t io bc tret,ondhe linri ts oI lre;pte'ofsnlaano cvcll moder':ltene:rns_Br t h i s I , h j . l n \ \ n \ " , r L - , . j r r . , .. o s t i t , . o r . . , . , . h , , o 1 , 1 .o . r _J o i r n a . n r . d r 1 t F I n , r 5 ,. . r o , , .. , , u \ r , . r , , . r t | | . " u l s c h n , u , . r . , JL r )melns of Dalt pzrl.rncr]t o.wll. i,ith snrrll pc|iodicrt (usu.rlly \\,eekll.oI' r o n i h h ) . ^ j r J . r - " , \ ' , r . 1 , . ! p r j . t " r i u , t o ( r . - . . j , 1 1 d , r t , . r , . r t _l l l ce uI t l lo 1 ' t r r ' (hasc / r rc .Such methodsof srl lrnle, frorn t ime to t ine. bee the subjectofcommend:rtior and nruch :tdvelsc c|iticism; the cr.iticism bciirg dr_r r i . d ^ l a r , u i r , Lh : r . L l l r r t , * j i u , d r , , o \ d " . r r . o o n . e , , d , - ,p r e o \ F r ' \ ' s n r 4 t t o j l i $ i f - . b I l t . - . . r ' \ " r . . \ v i t \ \ \ l r i , r r u c h L r o La r 1 ) N j s a . , u ; r ! d , i n d r . i - u . d j r " ( L r j . t . Jd d . r . r d o L , ) t " I u r d r h , I .m F J , r s d I o | n r ' t t r u r , . r I . J r , r r p r . t . d I . F . . . l { p dI t u t l . h ^ " , .w n r . t t ' r p )n l | g t r t n i l t , r n p p r ' t \l u u l dJ o w i l i u r . t . . r dr n , r r ' - p a r . a lp a ) n an l t l a r r r ' , I s r u ' l . , 1 s s : v . r ? , , q ' , " r . a t , r , o f p t r . . . r .prrces Inr ' .ommodit:-s t, , " . ' rac-d t , .unrt,rradq iJf I .ossiLi i i r"s o"purchase oI same :rt.ticlesb).nca|s of all cash dorvl. 'SupDoltels ot this Dl:u of sale contend that $hele the articlcp u c h n s p d . 1 | . a r ' I l, r , d t F L l a l . h i , r r hp L I F f i r so i | . 1 Ip d : r . " 5 , ,p o : " e s : I j ' r , c t r . i u r n , e , . r l ) o t " , j r . ) j r d d : r i o t , o " . i i . i : . r rs oe \ r " . . a - d t | . . 1 i r . i , r l h r . \ " j r s . ^ , t . , , u r . l . . n d a b . - r " . . r . . r , .or enroLco savrng,neg:udless of its nrelits ,I denlerits, sales on par'tiit parmeltsl . a \ . \ t e a d i l l i r " r ? j r . , d . . r r i t r u $ h " , " " h a , . d : a r r r1 t t " ' . 1 r , . o t ,erty thaL is not thc suhjert thereol. , O ' , . ^ " . 1 h c n r o r " r ' . r A r ld . ! p t o p . r . . r su I , j . t r a tJ , j , \ m e r , .d c { ,r s r r r o t l 1 e i , l / u l ' n i r t s r l , r : . 1 o , . t s , n n ' l . , a n g , L o . A I g . . . .h t s p I o L a L , l \ - , - l " l , . d i h ' s r ^ . h . q h , d ,s , F . o . t " r . t ," i o , . r h , , r r , iorner com lul1tt \ nt the 1\Ur' tcl.Briefln, the ltnnsa(tion is irLgenelal, About :rs follows:_A . o w r , s a l , a | c a l l r a r l r j r n t ^ { ' U - r s u h lv . i , ! o , l $ h ; - l l pr s l v r r r l n g ns c i l ;. B : s $ i l l i . g I o l r u ) ' " i u rn t ( \ , . t , r i , " b I u ' r f n " . u r n l . \ p d a . 5not have he arnountof surh price;B has, however',a smnll nnDLtntof cash on hand and hasearning powel, flom rr{ich car.Iings he feels that from tjmea steady


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298 I'he Re&ltg Blue Book ol Calilorniahe can saveand apply on the purchaseof the lot. B, therefore,pro-poseso A that he (B) will paydownsomuchcashon theagreedpur-chaseprice and that periodically thereafter, he will make additionalpayments on the balance due, togethel with interest on all of the pur-chasepriceremainingunpaidat any time, and that when he has ullypaid al l of suchpurchaseprice and interest that may accrue, hat Ashallgivehim a goodand sufiicientdeed herefor.To all of this A agrees and they thereupon enter into a contract,which is knolyn as a "Pa*ial Pa}'nent Contract for Sale of RealEstate." This contract recites he fact that A has sold o B. the cer-lain }.eal stateherein esc bed or a definite r ice.uponwhici pr:ceB haspaida certain cashamountand that the balance f the Durchaseprice hallbepaidbJ B ir monthly r o lhprperiodicalnstallmentr fso much,commencing n a definitedate and continuing on the samedefinite atc of eachsucceedingalendarmonli . or.o{herperlodicall ime hereafter. nli l t le lull amounlof lhe unpaid ul.(hasc riceofsaid ot is fully paid, togetherwith interest on all unpaidpodions atall times.The monthly paymentsnlay be a set amount,out of which thereshall first be paid, nterestdue at the agreed ate up to suchpaymentdate on unpaidbalanceof purchaseprice of lot, and the balanceap-plied on reductionof suchp ncipaldebt.The monthly paymentsmay be for a set amount,Zlx6 nterest,asa.bove t forth. Also, the interest may, in addition to the monthlypayme_ntsnd interest payment requiremntsbe quarterly or semi-annuarry.Theparticular plan adopted or partial paymentss usuallybasealon strateglc reasons, hat is, the type of purchaser-he may be one\a;howants o knoweachmonth ust exactlyhow muchhe mustpay,orhe may be ol1ewho wants his monthly payments o be applied o re-duction of principal indebtednessnly, and is willing that the interestaccning shall be an additional monthly, quarterly, or semi-annualobligation.The privilege s alsogiven the purchaserunder suchcontracts op&yadditionalsumson the purchaseprice,at his option, hus accom-plishinga two-fold purTose,iIst, reductionof principal, ndebtednessu]}on which interest accrues; and, second, the eaxlier completion ofthe purchaseend the vesting of the full title in the purchaser. Thisis especiallydesirablewhere the contract cove$ unimprovedprop-erty, and after the purchaserhas proceded ell along oward thefinal conclusion f his payments, e may desire o improvethe pr.op-erty and in making such imprcvementswill find it necessaryoencumber t for part of the improvementcost. So that with theprivilege o{ paying up the contract within a shor{er time, by meansofadditionalpal'rnents,t is possibleor him to accomplishhe cleanirgup of the contract and the vestingof the full title in the purchaser,and making the real estate so purchased, available for mortgag orother lien purposes o provide a part o{ th funds for the improve-ment, suchas a home or otherwise.The contract vrill then provide hat on B having {uUy and finaitydischarged is obligationunder the contract, hat A will, thereupon,givehim a Grant (Warranty in some ocalities)Deed, ogetherwith a


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The Realtu BLrrcBook ol Co,Ufornii 299( ; u i r h n i n o r ' T i l , " , , $ ; r , J ' r : l - o r h " . l i . r , . f " : , d D . a d , , s r p d l_ nng | a ' l o r . . . S u c hg . r r a r , t p , , 1 dd - - d r o Lp . r t b . e \ p p - . , ^ i r h ,

DuIiDs all Ure t iDc ihnt B is mati i lg Dl] .nrentsunale]. js conl r ' . . 1 _s o r l i p d h p , ^ i r , L a r o , t , at t s t r l i . r t s^ r t , p p : . l , . L t . . l - \ c n rp r e : l0 t h ' c u n l l h . l \ n j l ' n s r rA . : . n d ^ r L n i D h . s i l ' v a r d F n n l t .. u n r 1 ' n r a dt n t , r r ^ I , r ! . r . p r , ' ^ t r , i , . - . . r , . r s" t r t ^ . ^ , 1 r h . r . . d i , r ih ln l n r lo l h , ' ^ l , I ; r l i , , . s , r 1 . i . \ t ^ r t i - o l e . j | u t ! 1 1 \ s u l . , .chase.. l)-hinr vest n him rd then only b1 thc cxecution-al lctel i i .er1.to hinr of a decdto s:Li.l )r.opertvb), A.Undcl the ternrs of such corhact U is r'cqui]'ed, rnit ^grces to t)aral l t rxes, assessnlcntsl ld other' l i l rc iens ha1,1. i l lacc|ui-aeainst-hispropeltv f lorn .rnd after th clateot his coDtuci; in fac1,he assumesthe fxl l dut iesand responsibi l i t ics t o\} l lelshipof the Dr.opeltv ur,ing the periocl r. j thir r-hictr re s |r l , ing oul oD lrsco rfact.\ l l s , , . r , o " . , t t , . , r ' r ' \ . , " I , l r , j , . - : . , , " . t r l r " p " . . - I ( co fI ' 1 5' ! n r r , r ' i , " r , r r r i r ' ^ l r ; r ' l t . . , u r ' r , : . s , . ,$ i r , . t : o t , r , 5 ^ t . \ . r i .' l E n r ' i r l r ' r \ r . g a . . , I d , l r r , , . o r r l " , , r . j r r 1 . , . r r r . . rI , j 1 \ l n r L dhsd u . 1 l , r ' . i t , i l i . rd r , p , - . 1 . . . , , . , s , . r r d t r r r r r 1 , r . , , l r r p " . " tr p r L l n ' ' 5' o . " : 1 , 1 .1 u f i . i t | l r r , , i t , i . I i a t - : | , hn r , : - id c . r \ . s p , r . ,result rg in his losi lg the p:lymeDts c has nradc,:rnd l i l ight nr an. ito the propelty co\'eredby such contracr." T t a s . t r F r " \ . , u r , \ : . i t i r : r , i , , r s " t r , , , . . , , i r t r " , . i ^ r . o f f n "f F i l r r r . . o r F J r n i l . 1 , o r ri r r b r l ^ . j f , h i s n - . . 1 , ^ i , r t ' , r r I $ r i r . s . r ,d p l . r . l t . r { i . r l , ' $ ' l L p t , , " . , n d i o h i r , . $ r i i A d s . r r r i s t . r s , fl . d o p - r r u r L \ . . r t r r , r ' o r I i rp j , . . i ^ r I , r u r1 , y . , , r . . . u r f a j . . o i , - ; c h d ,l r u l t . I n . l . c x t / ' s . r ' . n l i o r nd , l , , c t i u n o . r \ r , , 1 . h p . o n r r a c t .Should the seller.bt delay lvdive such defrult as just indiurie


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300 The Realty BIue Book ol Culit'olnia, Upon rhe.trust companl receir ing onveyani,e f surh Tealpr.op_erry.^it imrnedialely hArcafrar.undpr.dire.t ion of ns bpr.ef iei ir ies,nles lor recorda mrp ol such 19trd. vhereinaj l jots, streets,etc..axeplat lpd. Lrpon (ceptar p of ihp,nat b\ rhpp,oner author:t ipq salescalnpargr. is hen inst i luted. usuall j bl, r thoroughly organizFdqalpsagen.y. As purchasplsafe nr'ocJred.ontracls arp jscuadto iha.n bl .t h p t n j s l c o m p a | | v ,\ h ' ( l c o n r a i n na l e r m co f . a l p an d p a y m " t r t .provisions 4r' forfeitulp end cpr efAlt \ an) buttaing rest i ici i ;n; anauses mposed n lt e nronp, ' \ . fo| lhp Fo.ral pnpfir f Al l fur. l rsefs iDthat tract. Thes?buildjng 'enrf i . l iors iI Iesidenli jr l e,r iors senel.ai lvDro_vrcle garnstsala10and uqe b) an) Fx,.apl f the Caucasia,rarp, rp_srnclrons Iof festdance ufpospsonlJ lor a dp6nite ar, iod {usuall \l l o m l w e u l y l o f i f l ' } J a a t . s r . m i | | i r r u m j r l u po f i r n p | o v e m e n r sn iwhplhej one o| i \ .o-slorJ houses.. t isi in,.n rorn srr.et rtrd raar lrnpInl l l rmp|o\ 'ema c n,rst be pln,."da,,d mart, olh.rs, deDendinE DonI .ppol prope y involredand charactprdesired or neighborho;d._ -- The trusl companas.ol p.t the palmcntc as e1 ial l duc and onlull payment, jsslle deed to DurchaserWhere -large racts of ltnd are subdivided into city lots enalsmall?ctFage nd arp-handled J trul l compenics.heJ are known as,Sub_orvrsron ruqts and clunng he adm;nistrsl jonof such lrusl and forrna Denenrot the beneficial wnet.s herpunder,1be Tt,usrce, ul ofl h e m o n i e s . o m i n gn l o i t s h a n d s r v i ) . r u p l r h p , o n l r . a c t ss s u e d ilhem lor properlt soldundpI thiq subdivisiun, a] the tnxesnnd ien;upon hat port ion of thp propertJ |emaining n i is hanasat thei irneano.nolso sotct nderconlracl.and whprp hc property s l ikewise hesu,olect t a mortgage. he trustpeatranges fot.sdequatp nd DroDerrslease gTeemanisor pachlo1 n suchs|bdi\ . ision, o the endinat afull protection is afforded the pur.chasersof such ;ontlacts_that inno event would the foleclosure of a mortgag afiect the buyer,s inter_est in the lot so purchasedbv him.Contra4ts ssuedbl t fu. l companipsundFr surh circumstance!grve aDsolute role(t iorr o the purchaser. hal he ui l l , uDonmakinsI,ul l .paymenl nd l iving up to lhe tcrms ol his contract, rereive hi ioFedand guaranlecof i i l ie for ihe iand so purchased l him-From thp standpoinrof ownersot pr.oppny o be s; divided, heservrceo, a I ,rust comlany. as ttrrstpe, s pall icularly dpsi l ,ablp ndsalrsla(lory, oj. t lp reason hat thel keppa ful l and complete pcordor aI rransac ons n earh trusl and do al l o{ the bookkeepinshprelor.and such rpcordsand such books so kepl trv Ltr.rr.,, .e auiitaife foiltrJiDspectionof the patties in interest at ail times, and in adclitjon to this,lheylender such bpnaficiariesonplererpports.mnnthl), so rhai suchr'pnFli(ranps re at al l i jmes ad\ispd as to tbe pr.o$.ess nd statusotthe subdivision in which Urey ar-eso interested.

, Vasring of 1;r le in T|us1 Cornpanies.s indi(^ted.has proven obe \er) d.sirAble nd ol conlrde|ablp dvantage n rhe maikel ing olthis type of property becauseof the assuraDaeof stability of li ewhile pa)'ments are be:ng rnade anal certainty of conveyanceon fullper-formanceof onl nct Ipquirpmcnls. This is. n facr. s; nearly ruethar -spldom s a lrusl .omn^ny coniract re,.ordFd J rhe pur.haser,ln lacl, lrusl compall ie!gener^l lJ adrise prrrchaser< nder con_


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TheR&lt! Bl e Eoutt. f Ceti lont i& 301tr'actsnot to recold theil contlacts o1.the .easonhat a lecor.alealon_i r ' r . imnLas . r ro r 'd l i , . . r t Lu . .rhn . , , . t , xs - ro , , r , s r . i : ' r l in ie ; rr l l r r n p l o f p " ' . . , i r l r n - , ' , r ' d . . i u r u i r ) i ^ . o r r . r . . r . ,{ i l t . \ ' p n . u . , l l v. o s l t h " 1 i u . r . l r , . , ^ l ! i , , t i l r a r h F C , r r l i r i r r . n t T l " i . i " - : ; j ,l y ' - l : ' 1 , " , u r . rh r , i , . . , ' . i . , . r p. I L i I i , . r , . . 1 i ^ " f L t" , . o ' ' r | r . r ,r o $ r n 3 - l i n l h . g : J . I p , . ^ L ' . l r r i . | . a d - o f , r e. o i r , r ' r . ^ t i . , 1 s l t , , , o . p , i " q t . i s . , n d . r i . . p , p " s , , r . ]f o r r h a h , , q o . . dl n 4 l v r r e r o d a ' 1 t , , p r. r t e r - c t i r r 1 . ,p | o D n . : 1 . o . t o . s " i p _ h , . . . . ,or the conttart :r!d then have the contlnct, 1\,ith the assisnmant' F . r ? r u r d p d .. \ \ c h , s . \ i F . . i ! . l n . t , , , a k , , , l J i i o i , . i , i . - " ; n ^ . . " . ;rne nme n1cleed.. W : : , - s . r e , i l l ! : . 1 1 . r u , u . , r , . t r r " . , r [ r . : - o r . . t i , r r , . . s a rr r , g , o l h t ' r g . h | " . o f , l I g i - . r l j r , h - i s r - l \ i r , r " u t l : .u t o r t r a I l . r . lconpnny to del:vcr his decd r"ndjUe nnd thnl flie rccrilatirg or the cori_l i l i r 9 t ^ ' u r ' F i , , r i r . ' r i r r : r r r o . r i , r , , r . J L l i r , o n a l; . , i , i r r ' " ,I r ' ^ r a c n n . I , h s r . , , r . . , . , 1 , . j r . 1 !r \ \ . D r i r d i \ d L a i ! , h i s a | E r r m c rrs rot good, for the leason that an ir)djvidunl ,":|v'di" -.-b;";,"ci _ r ' o l \ ? , 1 . . o , 1 h 1. r , p r , , . h i r . . , . , r .n r ,r . ^ " r i E h . b n b p r r o . t , , o r " " , " r lD\ ' rne 'e(otctrngI thc .oItr:rct.

" Purch:rseof lots i ihis nr:rnnel h:Lsbeell thc nleans of thousands^ l t . u 4 r F o t ,a : ' m n r r . t , l i s l. l r r s r \ r r ! . hJ r r . a \ " o u l d n t u f r , r . o h . L l I\ \oujd nol Jr jr \p. lnfe r AD\ other'1rar.. , .With.a ot so bousht comes he;ision oi a home,analno sooDersth c o i p r ' d . u . , , : r h " p j , . . . r d j j , v i . r " s ^ , a . , o n , p r . - o r n , u , n L e d

T n . r u q l " l h r r r " . : r ' . p , r: r ' ^ s . ," r s u . l . , r , f l i , s1 i , i s o s l l | ru , t -s t . , , s . F . i , r d i ^ d , i I n | l s a . d su f \ v o | k : n rn L e l . sl o m s l r r . l h p s t | p t s l : l S n u r h p r . r' ^ ' l o " I i a . i t i p . r s c o r . l t t e a r i _d p n . e t t h ps o | t h u t t r r i " , , o f s p t . ra I . p . . l\ t x e .. . . L i l r t r p D r | d . , , ' ! t d , \ . o t , . n , c o | | t i l j . n s g o e r e n i u r - h a | b vs F , l | r g . r n . . o . t r r , t ia 1 , o r , o , L , r " i j I I . j , J n p r . l , l j L a n d t h u s r h e m a no r . m l r , r i m F r r r rb a o r , p s n r n p d i a r . l r 1 , o s - . s s . d u f , h o m . , r r d i , , s t p a d0 T r n o r r t h l J n r L h . c r , r ! i I s u r a r d j , 1 . r i | i I q I r l l u \ " p r " \ r t , o t . j .

T h " r c i . n - o . o r , I L l n I r o p \ " t o 1 , " r e t r , . . r , , " , . . r a r h e i j r " , " a , . t _r n g o e p n t s u t , t r i t t \ t d u n l l ! o \ , j . p d r u t r " - , l o , . t l ^ F o n r p o w l r e r . b v\ | | r u c o l r L . r cv . l \ . t u \ : - s s i o r : , 1 I . i , a \ I , a . . 1 r - . .o . r l r F . a \ r r , r t a d " . , iror ' r rs ooser ' \a ce . rnd pn1bl (en lent_Comnunism, Bolsheyisnr anal Telrolism are irlconsistent with theoll.rremhip.ot propeltl'r and once a utaD becoms a home orvlLet,,hecan.and will have littl s)mpaUr),1vith an],system that would jeopaI'rl_rze rts exrstence ol render its loss or destr\rction vel.}' pl,obabie.


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Documents

Land Contracts Partial Payment Sales by W.B. Stringfellow