Land Purchase Agreement Template

What Should be Included in a Land Purchase Agreement?

A simple Land Purchase Agreement usually contains the following sections:

1. Full names and contact information of the parties.
2. Description of the land to be sold and purchased.
3. Price of the land.
4. Deposit clause - usually, 10 percent of the total price.
5. Reference to taxes to be paid before the deal is finalized.
6. Title clause - the owner confirms their willingness to surrender the title and other relevant documents to the buyer upon the contract signing.
7. Time for closing the deal - it can take several days or months, depending on the parties' assessment of costs.
8. Signatures of the seller and purchaser.

How to Write a Purchase Agreement for Land?

Follow these steps to prepare a Purchase Agreement for Land to formalize the deal after the buyer makes their offer and the current owner of the land accepts it:

1. Indicate the title of the document and the date on which you are finalizing the transaction.
2. Write down the names of the parties . To facilitate identification, you should also add their contact details and driver's license numbers if possible.
3. Include the legal address of the real estate to be sold and state the lot measurements in acres or square feet . The description of the land must be as accurate as possible to avoid confusion and misunderstandings in the future - you may mention landmarks situated next to it and describe the land or houses that are located in the neighborhood which is significant when you draft a Vacant Land Purchase Agreement with no buildings attached to the land. However, do not forget to outline what kind of property is actually included in the deal.
4. Record the sum of money the buyer is supposed to pay to the seller. Select the most convenient method of payment and enter the date the seller must receive the entire amount of money . You can refer to the payment schedule and installments you have agreed upon. If the transaction is financed by a bank or a similar institution, you should include this detail in writing - certify the purchase is possible because of a certain loan obtained by the buyer. You can briefly describe the loan that finances the land sale but there is no need to outline every single detail since the contract will be enclosed to the copy of the loan agreement anyway.
5. If the transaction depends on the other deal that must be finalized before the parties proceed with this contract, confirm the agreement becomes enforceable only when another real estate is sold - indicate its location and legal address as well.
6. Name the party responsible for the closing costs and appraisal of the land . If you wish, the seller and the buyer can share these expenses and pay for the title insurance, deed recording, and mortgage processing together.
7. It is highly recommended to obtain a notary seal for any major deal that involves real property . Even if you have scrutinized all the documents with your real estate agent or lawyer, the document requires additional protection - the parties should appear before a notary public and confirm their identities to prevent fraud and make sure the contract is properly executed. Only sign the agreement once you are in the presence of the notary who certifies your intention to buy or sell the land in question.

Still looking for a particular template? Take a look at the related templates below:

• Land Contract Forms;
• Home Inventory Spreadsheet Template;
• Home Inspection Checklist Template for Buyers;