"Land Purchase Agreement Template"

What Is a Land Purchase Agreement?

A Land Purchase Agreement is a legally binding contract that outlines the details of the sale and purchase of land - the physical ground with or without buildings erected upon it. Whether your plan is to buy the land and later build your own house on the property or you represent the interests of the developer and investor who needs the land for commercial purposes, this is the document for you. This legal instrument will allow you to build a residence from scratch or invest in an office building with a location convenient for new clients. You can download a Land Purchase Agreement template through the link below.

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What Should be Included in a Land Purchase Agreement?

A simple Land Purchase Agreement usually contains the following sections:

  1. Full names and contact information of the parties.
  2. Description of the land to be sold and purchased.
  3. Price of the land.
  4. Deposit clause - usually, 10 percent of the total price.
  5. Reference to taxes to be paid before the deal is finalized.
  6. Title clause - the owner confirms their willingness to surrender the title and other relevant documents to the buyer upon the contract signing.
  7. Time for closing the deal - it can take several days or months, depending on the parties' assessment of costs.
  8. Signatures of the seller and purchaser.

How to Write a Purchase Agreement for Land?

Follow these steps to prepare a Purchase Agreement for Land to formalize the deal after the buyer makes their offer and the current owner of the land accepts it:

  1. Indicate the title of the document and the date on which you are finalizing the transaction.
  2. Write down the names of the parties. To facilitate identification, you should also add their contact details and driver's license numbers if possible.
  3. Include the legal address of the real estate to be sold and state the lot measurements in acres or square feet. The description of the land must be as accurate as possible to avoid confusion and misunderstandings in the future - you may mention landmarks situated next to it and describe the land or houses that are located in the neighborhood which is significant when you draft a Vacant Land Purchase Agreement with no buildings attached to the land. However, do not forget to outline what kind of property is actually included in the deal.
  4. Record the sum of money the buyer is supposed to pay to the seller. Select the most convenient method of payment and enter the date the seller must receive the entire amount of money. You can refer to the payment schedule and installments you have agreed upon. If the transaction is financed by a bank or a similar institution, you should include this detail in writing - certify the purchase is possible because of a certain loan obtained by the buyer. You can briefly describe the loan that finances the land sale but there is no need to outline every single detail since the contract will be enclosed to the copy of the loan agreement anyway.
  5. If the transaction depends on the other deal that must be finalized before the parties proceed with this contract, confirm the agreement becomes enforceable only when another real estate is sold - indicate its location and legal address as well.
  6. Name the party responsible for the closing costs and appraisal of the land. If you wish, the seller and the buyer can share these expenses and pay for the title insurance, deed recording, and mortgage processing together.
  7. It is highly recommended to obtain a notary seal for any major deal that involves real property. Even if you have scrutinized all the documents with your real estate agent or lawyer, the document requires additional protection - the parties should appear before a notary public and confirm their identities to prevent fraud and make sure the contract is properly executed. Only sign the agreement once you are in the presence of the notary who certifies your intention to buy or sell the land in question.

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Land Purchase Agreement
This Land Purchase Agreement (hereinafter referred to as the “Agreement”) is entered
into as of ________________, by and between ___________________________, with a
mailing address of ________________________________________________________
_________________________________ (hereinafter referred to as the “Purchaser”) and
___________________________, with a mailing address of _______________________
________________________________________________ (hereinafter referred to as the
“Seller”), collectively referred to as the “Parties,” both of whom agree to be bound by
this Agreement.
1. Payment. The purchase price shall be $________________ to be paid in accordance
with selected subparagraph below:
☐ Cash. The purchase price shall be paid in its entirety in cash at the time of
closing the sale.
☐ Cash subject to new mortgage. The purchase price shall be paid in cash at the
time of closing the sale subject, however, to Purchaser’s ability to obtain a first
mortgage loan within _______ days after the acceptance of this offer by Seller in
the amount of $________________, payable in not less than _______ monthly
installments, including interest at a rate not to exceed _______% financing. If such
financing cannot be obtained within the time specified above then either Purchaser
or Seller may terminate this agreement and any earnest money deposited by
Purchaser will be promptly refunded.
☐ Cash subject to existing mortgage. The purchase price shall be paid in cash at
the time of closing the sale after deducting from the purchase price the then
outstanding balance due and owing under the existing mortgage in favor of
________________, dated ________________, in the original amount of
$________________;
of
such
mortgage
debt
is
approximately
$________________ as of ________________.
☐ Cash with assumption of existing mortgage. The purchase price shall be paid in
cash at the time of the closing of the sale after deducting from the purchase price
the then outstanding balance due and owing under the existing mortgage in favor
of ________________, dated ________________, having a present balance of
approximately $________________, as of ________________, which the
purchaser hereby assumes and agrees to pay in accordance with its terms and to
perform all of its provisions; purchaser shall pay any and all payments coming due
after the closing of the sale. Any transfer fees required by the mortgage shall be
paid by ________________.
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Land Purchase Agreement
This Land Purchase Agreement (hereinafter referred to as the “Agreement”) is entered
into as of ________________, by and between ___________________________, with a
mailing address of ________________________________________________________
_________________________________ (hereinafter referred to as the “Purchaser”) and
___________________________, with a mailing address of _______________________
________________________________________________ (hereinafter referred to as the
“Seller”), collectively referred to as the “Parties,” both of whom agree to be bound by
this Agreement.
1. Payment. The purchase price shall be $________________ to be paid in accordance
with selected subparagraph below:
☐ Cash. The purchase price shall be paid in its entirety in cash at the time of
closing the sale.
☐ Cash subject to new mortgage. The purchase price shall be paid in cash at the
time of closing the sale subject, however, to Purchaser’s ability to obtain a first
mortgage loan within _______ days after the acceptance of this offer by Seller in
the amount of $________________, payable in not less than _______ monthly
installments, including interest at a rate not to exceed _______% financing. If such
financing cannot be obtained within the time specified above then either Purchaser
or Seller may terminate this agreement and any earnest money deposited by
Purchaser will be promptly refunded.
☐ Cash subject to existing mortgage. The purchase price shall be paid in cash at
the time of closing the sale after deducting from the purchase price the then
outstanding balance due and owing under the existing mortgage in favor of
________________, dated ________________, in the original amount of
$________________;
of
such
mortgage
debt
is
approximately
$________________ as of ________________.
☐ Cash with assumption of existing mortgage. The purchase price shall be paid in
cash at the time of the closing of the sale after deducting from the purchase price
the then outstanding balance due and owing under the existing mortgage in favor
of ________________, dated ________________, having a present balance of
approximately $________________, as of ________________, which the
purchaser hereby assumes and agrees to pay in accordance with its terms and to
perform all of its provisions; purchaser shall pay any and all payments coming due
after the closing of the sale. Any transfer fees required by the mortgage shall be
paid by ________________.
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☐ Sale by Land Contract. The purchase price shall be paid in accordance with the
certain land contract attached hereto and incorporated into this contract by this
reference. The down payment to be made at the time of closing this sale shall be
$________________ and the balance of $________________ shall be paid at the
rate of _______% per annum.
2. Earnest Money Deposit. As earnest money Purchaser deposits $________________
with the broker which shall be applied to the purchase price at the time of closing the
sale. In the event that this offer is not accepted by Seller this earnest money deposit shall
be promptly refunded to Purchaser by the broker. In the event that this offer is accepted
by Seller and Purchaser shall fail to perform the terms of this agreement the earnest
money deposit shall be forfeited as and for liquidated damages suffered by Seller. Seller
is not, however, precluded from asserting any other legal or equitable remedy, which may
be available to enforce this agreement.
3. Real Estate Taxes, Assessments, and Adjustments. Real Estate Taxes accrued
against the property shall be prorated through the date of closing the sale and Seller shall
pay all taxes allocated to the property through that date of acceptance of this offer to
purchase. Rents, if any, shall be prorated through the date of closing and all rent deposits
shall be transferred to Purchaser. Existing casualty insurance shall be canceled/prorated
through the date of closing.
4. Title to the Property. Seller shall provide purchaser prior to the closing and promptly
after the acceptance of this offer, at Seller’s expense and at Seller’s option an abstract of
title to the property brought down to date or an owner’s policy of title insurance in an
amount equal to the purchase price, said abstract of policy to show marketable or
insurable title to the real estate in the name of Seller subject only to easements, zoning
and restrictions of record and free and clear of all other liens and encumbrances except as
stated in this offer. If the abstract or title policy fails to show marketable or insurable title
in Seller a reasonable time shall be permitted to cure or correct defects. Seller shall
convey title to Purchaser at the time of closing by a good and sufficient general warranty
deed free and clear of all liens and encumbrances except as otherwise provided in this
offer and subject to easements, zoning and restrictions of record.
5. Possession of the Property. Purchaser shall be given possession of the property on
________________. A failure on the part of Seller to transfer possession as specified will
not make Seller a tenant of Purchaser, but in such event Seller shall pay to Purchaser
$________________ per day as damages for breach of contract and not as rent. All other
remedies, which Purchaser may have under law, are reserved to Purchaser.
6. Risk of Loss. The risk of loss by destruction or damage to the property by fire or
otherwise prior to the closing of the sale is that of Seller. If all or a substantial portion of
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the improvements on the property are destroyed or damaged prior to the closing and
transfer of title this agreement shall be voidable at Purchaser’s option and in the event
Purchaser elects to avoid this agreement the earnest money deposited shall be promptly
refunded.
7. General Conditions. It is expressly agreed that this agreement to purchase real estate
includes the entire agreement of Purchaser and Seller. This agreement shall be binding
upon the heirs, personal representatives, successors and assigns of both Purchaser and
Seller.
8. Special Conditions. ____________________________________________________
_______________________________________________________________________
_______________________________________________________________________
9. Governing Law. The Parties agree that this Agreement shall be governed by the laws
of _____________________.
State
10. Time for Acceptance and Closing. This offer is void if not accepted by Seller in
writing on or before ________________ of the ________________.
Closing of the sale shall take place _______ days after Purchaser’s receipt of an abstract
showing marketable title in Seller or title insurance binder showing insurable title in
Seller.
This offer is made at ______________________________________________________
________________, on ________________.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
_________________________________
_________________________________
Seller’s Printed Name
Purchaser’s Printed Name
_________________________________
_________________________________
Seller’s Signature
Purchaser’s Signature
_________________________________
_________________________________
Date
Date
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