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Installment Sale and Security Agreement
Secure installment payments and protect both parties with this Installment Sale and Security Agreement Template.
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Installment Sale and Security Agreement Template
This Installment Sale and Security Agreement (“Agreement”) is entered into on [Date], by and between:
Seller:
Name: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
Buyer:
Name: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
Collectively referred to as the “Parties.”
1. Sale of Goods
The Seller agrees to sell, and the Buyer agrees to purchase, the following goods:
[Detailed description of goods including model numbers, serial numbers, and condition]
Title to the goods shall remain with the Seller until the purchase price has been paid in full.
2. Purchase Price and Payment Schedule
Total purchase price: $[Total Amount]
Down payment due upon execution: $[Amount]
Remaining balance of $[Amount] to be paid in [Number] installments as follows:
Payment NumberDue DateAmount1[Date]$[Amount]2[Date]$[Amount]………
Payments shall be made by [Payment Method]. Late payments shall incur a fee of [X]% of the overdue amount.
3. Security Interest
The Buyer grants the Seller a security interest in the goods until full payment is received.
The Seller may file any necessary financing statements to perfect and protect this interest under applicable law.
4. Delivery and Risk of Loss
Delivery of the goods will occur on [Delivery Date] at [Delivery Location].
Risk of loss passes to the Buyer upon delivery and acceptance of the goods.
5. Warranties
The Seller warrants they are the lawful owner of the goods and have the right to sell them.
The goods are sold “as-is” unless otherwise stated in Exhibit A – Warranty Terms.
6. Default
In the event of default by the Buyer, the Seller may:
Accelerate the remaining balance due immediately.
Repossess the goods, with or without court order, as permitted by law.
Pursue legal remedies to recover amounts owed.
7. Insurance
The Buyer shall maintain insurance coverage for the goods until the purchase price is fully paid, naming the Seller as a loss payee.
8. Governing Law
This Agreement shall be governed by and construed under the laws of [State/Country].
9. Dispute Resolution
Disputes shall first be resolved through good-faith negotiation. If unresolved, they will be submitted to mediation or binding arbitration.
10. Entire Agreement
This Agreement constitutes the entire understanding between the Parties and supersedes all prior agreements and representations.
Signatures
Seller Signature: ____________________________ Date: _________
Printed Name & Title: _________________________________________
Buyer Signature: ____________________________ Date: _________
Printed Name & Title: _________________________________________
Details
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Installment Sale and Security Agreement
INSTALLMENT SALE AND SECURITY AGREEMENT FAQ
What is an Installment Sale and Security Agreement?
An Installment Sale and Security Agreement is a legal contract where a buyer agrees to pay for goods or property through a series of scheduled payments, while the seller retains a security interest until the purchase price is fully paid.
Why is this agreement important?
It protects the seller by providing a legal right to reclaim or repossess the goods if the buyer defaults. For the buyer, it provides a structured and documented payment schedule, minimizing confusion and disputes.
When should you use this agreement?
Use this agreement for the sale of high-value items such as vehicles, machinery, equipment, or other assets when payments will be made over time rather than upfront.
What should it include?
Key elements include a detailed description of the goods, total purchase price, installment schedule, default remedies, security interest provisions, and governing law.
Does this agreement comply with secured transaction laws?
Yes. It includes provisions consistent with the Uniform Commercial Code (UCC) and similar laws to ensure enforceability of the security interest.
Need a customized Installment Sale and Security Agreement?
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