Land Purchase Agreement

Individuals and businesses use land purchase agreements to sell and buy land parcels of various sizes. 

This type of purchase agreement outlines essential details of the sales transaction and creates an enforceable contract between the seller and buyer.

A simple land purchase agreement helps you get the deal done and sell your property.

Table of Contents

• What Is a Land Purchase Agreement?
• When Do You Use a Land Purchase Contract?
• Why Use a Land Purchase Agreement?
• What to Include in a Simple Land Purchase Agreement
• How to Write a Land Purchase Agreement
• Land Purchase Contract Frequently Asked Questions
• Sample Land Purchase Agreement

What Is a Land Purchase Agreement?

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:

• Land agreement
• Installment land contract
• Land sale contract

But, keep in mind that a land installment contract differs slightly from a standard land purchase agreement.

What Is an Installment Land Contract?

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.

When Do You Use a Land Purchase Contract?

You use a land purchase contract for situations such as, but not limited to:

• Instances where the buyer has trouble financing through a bank
• When selling vacant land
• While creating flexibility in purchasing options

Land Pricing Factors

When determining the purchase price, the seller should consider several factors:

• Location and size of the real estate
• Availability of utilities
• Mineral rights and soil quality
• The amount of usable land and how the property is zoned

Why Use a Land Purchase Agreement?

A land purchase agreement template helps you document a deal between a seller and 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.

What to Include in a Simple Land Purchase Agreement

To write a land purchase agreement, you should include important provisions, such as:

• Identify all parties to the contract
• Include a detailed description of the land, including the property address and the legal description
• Provide the purchase price, earnest money deposit, payment details, and installment options
• Add financing contingencies, if any
• Include the representations and warranties section
• Detail any rights of inspection, title insurance, closing, and costs
• Signature lines for the parties to the agreement

A land purchase agreement contains many legal sections.

You can use our step-by-step builder to create a customized land contract in a short time.

How to Write a Land Purchase Agreement

Follow the steps below to write a land purchase agreement.

Step 1 – Write Date of Agreement 

Write the date of the land purchase agreement.

Step 2 – Enter Seller and Buyer Information

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.

Step 3 – Note Property Description

Describe the purchased property and include as much detail as possible to accurately identify the property.

Include the property size, property address, and legal description. Refer to the title or deed for a description.

Step 4 – Fill In Purchase Price

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.

Step 5 – Enter Financing Details

Provide whether the buyer will assume the seller’s existing loan and whether the purchase is contingent on the buyer obtaining a mortgage.

Step 6 – State Any Seller Representations and Warranties

Select the representations and warranties the seller will make under this agreement.

Write in any other representations and warranties not already provided. 

 Step 7 – Enter Closing Details

Provide the closing date and location. Indicate the seller and buyer closing deliverables and the seller and buyer closing costs. 

Step 8 – Fill in Delivery Date of Property

Provide the date the seller will deliver possession of the property to the buyer.

Step 9 – Write Miscellaneous Provisions

Provide for miscellaneous provisions such as seller disclosures, property inspection, title insurance, and dispute resolution methods. 

Step 10 – Obtain Signatures

Both the seller and buyer will sign the land purchase agreement.

Land Purchase Contract Frequently Asked Questions

Below are some frequently asked questions about land purchase agreements.

Sample Land Purchase Agreement

Below is an example of what a land purchase agreement typically looks like.

Land Purchase Agreement Sample

Land Purchase Agreement (download_friendly