If you`re looking to buy or sell land, it`s critical that you have a properly executed land sales agreement. An agreement of this kind protects both the buyer and the seller by outlining the terms and conditions of the sale, including the purchase price, property description, and any contingencies or conditions that need to be met before the sale is finalized.
Here`s a breakdown of the essential elements that you should expect to see in a sample land sales agreement.
1. Property Description: The first section of the sales agreement should include a detailed description of the property being sold. This should include the legal description of the land, as well as any special features or characteristics that set it apart from other properties in the area.
2. Purchase Price and Payment Terms: The purchase price of the land should be clearly stated in the agreement, along with any terms for payment. Both parties should agree on the purchase price and the payment terms before signing the agreement.
3. Contingencies: A contingency clause in the sales agreement protects both the buyer and seller by providing conditions that must be met before the sale can be completed. Common contingencies include home inspections, financing, and title searches.
4. Closing Date: The agreement should also specify a date for the closing of the sale. This is the date on which the buyer will take possession of the land and the seller will receive payment for the sale.
5. Representations and Warranties: It`s important for both parties to understand the representations and warranties they are making in the sales agreement. These may include statements about the condition of the property, any known defects, and any liens or encumbrances on the property.
6. Default and Remedies: The sales agreement should also spell out what will happen if one party fails to meet their obligations under the agreement. This may include cancellation of the sale, reimbursement of expenses, or other remedies.
7. Signatures: Finally, the sales agreement should be signed and dated by both the buyer and the seller. Each party should keep a copy of the agreement for their records.
While every land sales agreement will be slightly different, these elements should be present in any well-drafted agreement. If you`re buying or selling land, it`s essential that you work with an experienced real estate attorney to draft a sales agreement that protects your interests and helps ensure a successful transaction.