A land purchase contract is a legal agreement between a seller and purchaser to buy land. It includes details about the property, price, and more.
Updated September 22, 2023
Written by Josh Sainsbury | Reviewed by Susan Chai, Esq.
A land purchase agreement, also known as a land sale agreement or real estate purchase agreement, is a legal document that outlines the terms and conditions under which a parcel of land will be bought or sold.
This agreement serves as a contract between the buyer and the seller, specifying the rights, obligations, and commitments of both parties involved in the transaction.
The document is essential for providing a clear framework for the land sale and purchase, ensuring that both parties understand their responsibilities and minimizing the potential for disputes or misunderstandings later on.
You can further support your real estate goals with our Real Estate Purchase Agreement and Quitclaim Deed forms.
A land purchase contract is a legal agreement between a seller and purchaser to buy land. It includes details about the property, price, and much more.
Other common names for a land purchase agreement include:
But keep in mind that a land installment contract differs slightly from a standard land purchase agreement.
An installment land contract is a purchase agreement where the seller finances the sale.
The buyer pays for the land in installments (to the buyer) until the total price is paid, avoiding financing through a bank or a third-party lender.
You use a land purchase contract for situations such as, but not limited to:
When determining the purchase price, the seller should consider several factors:
A land purchase agreement template helps you document a deal between a seller and a buyer.
It is a legal contract to sell or purchase land, and this agreement helps both parties protect their interests and rights in what can be a complex real estate deal.
Most jurisdictions require that land contracts be in writing, as they lay out critical details that each party must follow and can legally enforce.
Otherwise, the land purchase agreement can be unenforceable or voided.
To write a land purchase agreement , you should include important provisions, such as:
A land purchase agreement contains many legal sections.
You can use our step-by-step builder to create a customized land contract quickly.
Follow the steps below to write a land purchase agreement.
Write the date of the land purchase agreement.
Provide the full name and address of the seller and buyer, the parties signing the agreement.
Then, indicate if the seller and buyer are individuals or entities, including the entity type.
Describe the purchased property and include as much detail as possible to identify the property accurately.
Include the property size, property address, and legal description. Refer to the title or deed for an explanation.
Write the amount of the purchase price the buyer is paying the seller for the property.
Include details regarding earnest money deposit and method of payment.
Provide whether the buyer will assume the seller’s existing loan and whether the purchase is contingent on the buyer obtaining a mortgage.
Select the representations and warranties the seller will make under this agreement.
Write in any other representations and warranties not already provided.
Provide the closing date and location. Indicate the seller and buyer closing deliverables and the seller and buyer closing costs.
Provide the date the seller will deliver possession of the property to the buyer.
Provide for miscellaneous provisions such as seller disclosures, property inspection, title insurance, and dispute resolution methods.
Both the seller and buyer will sign the land purchase agreement.
Below are some frequently asked questions about land purchase agreements.
A land purchase option is when a buyer pays for the right to purchase a property at a certain price and within a specific time frame.
The seller cannot sell the property to anyone else during that time. The buyer is under no obligation to buy the property, however.
Once the buyer pays off a land contract, the seller transfers the property’s legal title to the buyer through a deed.
The buyer now owns the real estate .
Yes, you can sell a land contract if permitted by the contract and state or local law.
Both agreements are usually identical unless something must differ under state or local law.
Below is an example of what the document typically looks like. You can download our free land purchase agreement in PDF or Word format and complete it on your own.
Create Your Land Purchase Agreement in Minutes!
