What is Land Sales Agreement Drafting?
A land sales agreement is a legal contract that explains terms and conditions for the purchasing and selling of vacant land. It has to be clear about the property, purchase price, and other terms for clarity.
Read the rest of this article to explore key terms to include in the contract, how to draft it, and how a lawyer can assist you with the land sales agreement drafting process.
What are Key Terms to Include in a Land Sales Agreement?
The following core information should be in a land sales agreement:
- Purchase price. Specify the total cost for buying the land.
- Payment terms. Outline the type of payment required, such as if it’s a cash purchase, and its method.
- Earnest money deposit. State how much the buyer must pay in the form of a deposit to show that they’re serious about the purchase.
- Property description. Describe the land, such as by including its physical address and size.
- Closing date. Specify when the deal closes and legal ownership is transferred to the buyer.
- Contingency clauses. List the conditions to meet prior to the deal going through, such as securing a loan or conducting inspections.
How Do You Draft a Land Sales Agreement?
When drafting a land sales agreement, make sure that it’s clear and precise. Here are some tips to consider.
Include a Clear Property Description
The land must be described thoroughly, such as by providing its lot and block, property size, street address, and legal description. You can retrieve the legal description from the property’s current deed.
Provide Occupation Information
Specify when the buyer can take occupation of the land and what responsibilities they will take over, such as regarding paying rates or taxes.
Detail Payments
You want to state the total purchase price and explain how it will be paid, such as with a deposit and installments. Explain payment methods, such as the account into which payments must be made.
When writing about the earnest money deposit, make sure that you clarify how it will be held and applied or possibly refunded.
Describe Breaches
Should a party breach the agreement, the agreement must outline how much written notice should be given to the breaching party. The notice should describe the breach and give the breaching party a specific number of days in which they can remedy it. Explain what remedies apply should the breach not be remedied.
Check State Laws
Land sales agreements are usually subject to specific state laws. This is why it’s advisable to hire a lawyer for assistance. They’ll keep your agreement terms legally sound.
Should You Hire a Lawyer to Draft a Land Sales Agreement?
Besides identifying state-specific laws that your agreement should be aligned with, a lawyer can help you in other ways when drafting your land sales agreement.
They’ll conduct the following activities during the contract drafting process:
- Reviewing the property. This includes properly identifying it and including title deed details for clarity.
- Establishing payment terms. A lawyer will specify the purchase price, deposit, and payment deadlines that complement your arrangement and prevent disputes.
- Conducting due diligence. A lawyer will check all relevant documents and information to prevent hidden risks that could affect the sale or transfer of the land.
- Allocating costs and responsibilities. They’ll specify which party is liable for various costs, such as rates and taxes, to prevent confusion.
- Outlining ownership. They’ll clarify exactly when ownership is transferred and when the buyer can take occupation of the property.
- Ensuring proper contract execution. A lawyer will check that the land sales agreement meets all legal formalities and is signed by both parties who agree to all its terms. This can help you to minimize your risk of future legal conflict.
- Reviewing a land sales agreement you’ve drafted. A lawyer will identify hidden risks, gaps, and errors that could cost you. An in-depth legal review will give you peace of mind that all its terms are clear and fair.
Where to Find and Hire a Lawyer for Land Sales Agreement Drafting
If you’ve decided to hire a lawyer to draft your land sales agreement for you, you might not know where to find one who’s reputable and experienced in drafting contracts. Use an online legal platform that makes it easy to connect with lawyers who are experienced, professional, and have the required skills to ensure your agreement is clear and legal.
ContractsCounsel is one of the largest online legal marketplaces that connects clients with a curated network of lawyers, all of whom have been vetted on the platform.
Requesting that a lawyer on the ContractsCounsel platform drafts your land sales agreement is easy. Here are the steps to follow from your device.
- Go to the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ If you’d prefer to request a review of your agreement, select ‘Contract review.’
- Post your project. Specify some details about your project, such as the type of land and why it’s being sold, to connect with the most suitable lawyers.
- Wait for bids. Once you’ve posted your project, you’ll receive multiple bids from lawyers on the platform who are ready to assist you.
- Review the platform’s lawyer information. This includes the lawyers’ credentials, location, field of expertise, years of experience, and client ratings for previously completed projects completed on the platform. This makes it easier to choose a lawyer to work with.
- Select and hire a lawyer to draft your land sales agreement for a flat fee.