A land purchase agreement form is a legal document that specifies the terms and conditions for the purchase of land. This document is similar to an ordinary purchase and sale agreement. The agreement includes the terms, protections, and time limits.
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The benefits of a land purchase agreement:
A land purchase agreement provides several benefits to both the buyer and the seller;
The buyers who don’t have a good credit history, this type of agreement is beneficial for them.
Since this agreement doesn’t need a buyer’s credit history so sellers can ask buyers for a higher price. With the help of the agreement, they can also ask for a larger money down payment.
Installment land contract:
Another effective way to complete the transaction for land is using an installment land contract. In this type of contract, you will pay installments each month. The purchasing party or buyer will have the land and the selling party or seller will receive the payments. The selling party will have the right to retake the land from the buyer in case they don’t receive payments.
How to write a land purchase agreement?
When you are writing a land purchase agreement, you must include the following elements in it;
Write the names of both parties in the agreement and specify the date when it will be signed.
Explain the property such as the space, type of land, and the exact location of the land.
Sale and purchase
Indicate in the agreement the name of the state and city where sales and purchases between both parties occur.
Price of purchase
Write the amount of money that will be given to the seller as well as specify how the money will be paid.
Title and survey
State in the agreement that the buyer will accept the title. Indicate the specific date when the surveyor surveyed the property and disclosed the facts.
The inspection period refers to a time frame that starts on an effective date until a determined number of days after.
Conditions for the closing
Select whether or not the closing will be conditioned upon the capability of the buyer to finance.
The closing and time
Include the date of closing that indicates when the agreement will be made official.
Specify the costs of the transaction and how these costs will be divided.
Closing documents and deliveries
In this section, write the designation of the exhibit.
Casualty and condemnation
For repairing damages to the property, specify the amount of money for which each party will be responsible.
Default and wavier
Specify the number of days that the seller or purchaser will have to cure a default. In addition, indicate the money that would be provided to the seller by the buyer for damages.
Indicate the contact details of the seller and the buyer for getting any notifications about the agreement.
Resolving claims or disputes
For any claims or disputes that may arise, write the available options that can provide a solution to them.
Provide the state’s laws that govern the land contract.
Offer to purchase
Include the different options about the offer to purchase.
Signatures of the parties
Affix the signatures of both parties in the final part as well as write their names and the names of any representatives involved.
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Standard Residential Purchase and Sale Agreement
Real Estate Purchase and Sale Agreement
Lease to Purchase Option Agreement Template
Land Purchase Sale Agreement Form
Free Land Purchase Agreement Form
First Amendment to Land Purchase Agreement Template
Drafting Land Purchase Agreement for Developers
Faq’s (Frequently Asked Questions)
If the buyer does not provide payments on time then the seller has the right to retake the purchased land. The land can be repossessed as the selling party can act as a bank.
After the completion of the land contract, the buyer is responsible for paying property taxes.