Example of a Land Agreement

In most agreements, there is a due diligence phase that allows the buyer to conduct tests on the property to ensure it can be used for the buyer`s intentions. This may include conducting environmental testing, obtaining local government permits, or other contingencies listed in the agreement. The calendar date, which defines when these documents come into force as a purchase contract, will be used to enter the information of this contract. Article I at the top of the first page contains a few empty lines for this purpose. Find the words “. Made On” then documents the calendar month and the day this agreement becomes active in the first line, as well as the corresponding year in the second line. Both parties must have sufficient opportunities to review the agreement that has been reached. As proof that this review has taken place, each page of this Agreement contains two lines at the bottom of the page. When checking the completed page, the buyer of the land must initialize the blank line “Buyer`s initials”. Similarly, the seller of the property must also enter the “Seller Initial” line at the bottom of each page to prove that they have reviewed each completed page. This task must be carried out for each party after completing the information requested by it and before those parties execute those documents by the deed of signature. As a rule, there are costs associated with the sale of land, which must be paid for it to be carried out. For example, a title search may be required, admission fees in the local jurisdiction, etc.

The decision as to whether the seller or buyer should bear these costs in a timely manner is set out in Article VI. Closing costs, with one of the three checkboxes checked. Therefore, select the Buyer check box if you want the buyer of the land to pay the closing costs, select the Seller check box if the seller of the property has to bear the closing costs, or select the “Both parties” check box if the buyer of the land and the seller agree to share the closing costs of this land sale. Suppose Bob buys a property from Jack for $100,000. With a land contract, Bob agrees to pay Jack in monthly installments of $2,000 over a 50-month period. After Bob Jack pays the $100,000 in full, Jack signs the deed of ownership to Bob. The ninth article with the label “IX. Surveying” requires a definition of the number of “business days before closing” that the buyer of the land receives to inform the seller of the land of any surveying issues with the land that must be resolved for the sale to continue. Write down this number of days in the line after the word “No later than…” The number of days before closing when the seller needs to resolve surveying issues with the property should also be documented.

The term “. To Remedy Such Defects Within” leads to the blank line in which this number of days should be entered for display for rectification or rectification. Land contract is typically used when a buyer cannot obtain financing in the traditional way and instead makes monthly payments to the seller, a process called owner financing or seller financing. This is a simple guide on how to legally buy land and have it registered on behalf of the buyer after graduation. As mentioned earlier, some land buyers may need to sell their own property in order to proceed with the sale discussed in this agreement. In the article “V. Sale of another property”, this problem must be addressed. If the current sale of the land does not depend in any way on the ability of the buyer of the land to sell another property, check the “Cannot” box in the fifth article. If this sale can only continue if the buyer of the land is able to conclude their own sale of a property, check the “Must be” box. This requires additional information about the situation of the buyer of the land. If the sale of a land in question depends on the sale of a property by the buyer of the land, its ownership must be declared. Produce the “.

Postal address of the property that the buyer of the land must sell in order to proceed with this sale of land on the first two empty lines indicated in the “Debit” option of article “V. Sale of another property”. This requires, on the one hand, entering the civic address of the property that is to be sold and, on the other hand, the postal address of the city of that property. The second set of empty lines completes the property buyer`s property report. Report the condition to the postal address of the property to complete the definition of the property`s ownership of the buyer of the property, then note in the following line how many “days” after the effective date (mentioned in the first article) the land buyer receives to complete his own real estate sale. This is important documentation because very few land sellers would be able or willing to wait indefinitely for the buyer of the land to proceed. The “parcel tax information” assigned by the tax assessment office responsible for supervising the identification of the property in question is also set out in Article “II. Legal description”. This can be expressed in the blank line “Tax Parcel Information” as a parcel identification number or in the tax card and lot. This information must be obtained for the local tax office or city services. Yes, as long as the contract has the right to assign the contract to another person. Many real estate sales require serious money presented to the seller to compensate for losses in case the purchase fails.

This agreement must name the “serious money” needed to proceed in the third article. The first line after the dollar sign expects the amount of money to be documented digitally, while the blank line after the words “. As Consideration By” requires the month and calendar day on which this money must have been received by the seller of the property. Each signing agent of this land sale must also print his name on the “printing name” indicated under his signature. Any seller, buyer and agent participating in the sale of land documented above must complete a designated signature area for that part. This document creates a signature area for two property sellers, two buyers, and two agents. If one of these categories requires more than two signatures from the group, you can copy and paste additional signature boxes if necessary. .