Buying a property does not only revolve around choosing and paying the property’s purchase price, but also the submission of legal forms and agreements which will document the eligibility and legalities of the purchase. For this, specific agreement forms must be made for different types of properties such as a land purchase agreement form for buying raw and developed land areas.
Standard Land Purchase and Sale Agreement Form
What Is a Land Purchase Agreement Form?
A land purchase agreement form is a type of agreement form that documents the property details of the land to be purchased by a buyer. The form will have to be finalized and be signed by the property buyer, seller, and the agent who manages the sale transaction. In addition, the form will also enlist the roles, responsibilities, and the obligations of the parties involved in the purchase agreement.
Essential Terms to be Defined in Land Purchase Agreement Forms
In different agreement form varieties, there can be tons of different terms and conditions to be stated depending on what the involved parties have agreed on. Nonetheless, there are some terms which are deemed essential to be included, specifically in a land purchase agreement form, and these are enlisted below:
- Financial obligations of both parties: This portion of the form will state the payments and fees to be provided by each party for the completion of the agreement and purchase transaction. For instance, the purchase price and required security deposit to be paid by the buyer as well as the compensation of the estate broker or agent which will be given by the owner of the property. The indication of who will pay for the processing fees must also be included in this portion of the form in order to legally hold the assigned party liable for the payments during the period of the agreement.
- Significant dates and time: It is important that an agreement will specify the date and time of procedures, dues, and other actions to be taken by either party. Some of the essential dates to state in the form would be the due diligence contingency dates and the date when the involved parties have agreed on a meeting to finalize the sale or purchasing of the property.
- Property and legal descriptions: The exact address and geological location of the land property to be purchased are one of the essential terms to be stated in any type of land purchase agreement form. In addition, the property’s description will also be used for various verification procedures such as property tax verification and property assessments.
- Delivery and service details: Each party involved in the land purchase agreement form should have their own copy of the documents which are used for the completion of the purchase transaction. And to ensure that each party has received their copies, a delivery and service information section must be incorporated into the agreement. The delivery details of the agreement form, property titles, and legal ownership forms must be stated which should have the names of the person who delivered the form, the method of delivery, and the date when the form was sent and received.
- Notice provisions: The purpose of a notice provision is to define the role of each party to inform the other parties about the progress of a procedure or the purchase transaction itself. Where the notice forms or written notice documents must be sent is also essential to be included in this portion of the form.
Examples of Land Purchase Agreement Forms
Land Improvement Purchase Agreement Form – Land improvements such as wells, parking areas, outdoor installations, and any property which are attached to the land are to be separated when it will be sold, or when the land property itself will be sold. For this, a land improvement purchase agreement form must be created and be signed by the parties involved. This form will specify and define the limitations of the areas which are included in the sale and can be purchased by the buyer. The limitations and the life span of the agreement will also be stated as well as the details of the inspection contingencies, restrictive covenants, and the defaults of the buyer and the seller.
Land Improvement Purchase Agreement Form
Raw Land Purchase Agreement Form – In the aforementioned land improvement purchase agreement form, the land property already has developed attachments which are referred to as the “improvements”. However, in a raw land purchase agreement form, the land property to be purchased by the buyer is one that has not yet undergone any type of development or construction. This means that the land property is in its natural state and that there have been no digging or clearing of the land prior to the purchase transaction. In the form, there are fourteen articles or terms categorized for different items, provisions, and covenants to be agreed by the involved parties. The articles include the agreement’s recitals, definitions, deliveries, waiver terms, terminations, and the parties’ rights and obligations.
Raw Land Purchase Agreement Form
Vacant Land Purchase Agreement Form – Compared to the other two agreement form examples, this type of document does not only state the property and purchase details but also the offers, acceptance, and the receipt of the agreement. The offer refers to the inclusions and the details of the property that the seller agrees to sell which will then be followed by terms and items which documents the buyer’s acceptance to the seller’s offer. There is also a portion in the acceptance section of the form that specifies the percentage of the purchase price which will be handed over to the broker who is helping out the buyer and the seller. Moreover, the agreement form also serves as the receipt of the purchase and the services which were fulfilled for the transaction.
Vacant Land Purchase Agreement Form
To conclude, land purchase agreement forms are useful for ensuring that the involved parties have agreed on the purchase with equal understanding and knowledge in lieu of the property being sold. And regardless of the variety to be used by a seller and buyer, they must undergo a negotiation and inspection phase to assure that concerns will be addressed accordingly before any signature will be affixed into the agreement form.
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