In every transaction, an agreement is crucial because this outlines the terms and conditions that should be followed by both parties. Besides, it brings essential information that records the transaction between both parties. To help you agree easily, you need a template. Especially if it is related to the land agreement. You need the land purchase agreement template with complete details from section to section.
If you are confused, this agreement is similar to the mortgage but it is different from the purchase agreement we see usually that someone buys a land using a bank and they complete the payment to the bank. But this agreement will allow the buyer to complete the payment to the seller until the payment is completed.
How To Write An Land Purchase Agreement
The land purchase contract template is one of the best tools you can use. This can be used for two or more parties. The benefits of the agreement are each party can walk out of the contract when they are no longer finding it suitable, but they will not face bad consequences for it.
The first thing you need to underline is deciding the information to include. Each party should be included properly before closing this deal. Furthermore, there are some steps to follow when you want to write this agreement, which are:
- Make sure each party has read the contract thoroughly before filling it out.
- Make sure the legal name of the parties is present. It should be clear and specify which one is the seller and the buyer.
Furthermore, other essential details such as zip code, city, state, and address should be written too.
What Are The Crucial Things To Include In The Land Purchase Agreement?
Besides the clear identity for each party, the following terms bellow matter. Make sure you don’t skip these parts:
- Price and Terms – The offered price accepted should be stated along with the payment method whether it is in the form of full cash, down payment or new mortgage. The information needs to explain in detail in the agreement or addendum. Usually, this requires the earnest money requirement is a sign that the contract is confirmed. It depends on the seller, most buyers can start at $1,000.
- Closing date and costs – State the date of the sale closing in the agreement. Usually, the property transfer will be listed in the closing date and time. For the closing costs, this is about the amount of the payment needs to be paid and who covers it. You can also split closing costs but it should be explained clearly here.
- Taxes and Other Assessments – In the closing date, the property taxes and others such as maintenance fees, fuel, and homeowner’s association fees should be explained and prorated too. If the taxes cannot be assessed directly, then it should be rolled back. It can be addressed using addendum.
- Items Included or Excluded – The last is the items that you have to include or excluded such as the light fixtures, windows, heating, and cooling equipment, doors, window treatments, bathroom fixtures, and others.