What Is a Land Purchase Agreement?
A land purchase agreement is a legal contract between a buyer and seller that outlines the terms of a land sale—such as the purchase price, property details, payment method, and responsibilities for both parties. It provides a clear framework for the transaction, helping prevent disputes and ensuring both sides understand their commitments.
Other common names for a land purchase agreement include:
- Land agreement
- Installment land contract
- Land sale contract
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.
SupplementalForms
You can further support your real estate goals with our real estate purchase agreement and quitclaim deed forms.
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
Buying or selling farmland? Use our farm purchase agreement template to cover agricultural-specific terms and protect your deal.
What to Include in a Simple Land Purchase Agreement
A strong land purchase agreement form should cover the following:
- 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
Our step-by-step builder allows you to quickly create a customized land contract that includes all of the essential elements.
Need to tweak your agreement later? Use a purchase agreement addendum or amendment to update terms without writing a new contract.
How to Write a Land Purchase Agreement
Follow the steps below to write a land purchase agreement.
Step 1 – Write the Date of the 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 identify the property accurately.
Include the property size, property address, and legal description. Refer to the title or deed for an explanation.
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 the Delivery Date of the 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.
Not ready to commit? Start with a letter of intent for real estate to outline key terms before drafting a full agreement.
Land Purchase Agreement Sample
Below is a sample land purchase agreement. You can customize this template using our document editor and then download in PDF or Word format.
Simplify Your Land Purchase Process Today
Legal Templates helps you create a clear, legally compliant land purchase agreement in just a few minutes. No legal jargon. No guesswork. Just a straightforward form you can edit, sign, download, and print. Start building your custom agreement now with Legal Templates.
Frequently Asked Questions
Does a land contract have to be recorded?
In most states, recording a land contract is highly recommended and sometimes required. This ensures public notice of the transaction and helps protect both parties.
Can you sell a land contract?
Yes, a land contract (also known as an installment sale) can be sold. The buyer’s remaining payment obligations transfer to the new owner, with the original seller’s approval.
Is a written agreement legally binding for a land purchase?
Yes. Under the Statute of Frauds, land purchase agreements must be in writing to be legally valid in nearly every US state.
Are purchase agreements to buy land valid without a date?
Technically, yes—but it’s risky. Without a date, your agreement may be challenged in court. It’s best practice to always include the date to avoid confusion and ensure enforceability.
